Research & Reports

2025 Business Confidence Index Report

The index combines and weights five key indicators to produce a score that can be easily compared to previous years. The scale has a maximum score of 100, and an index above 50 indicates a generally optimistic outlook while an index score below 50 indicates a generally pessimistic outlook.

In 2025, the Composite Index dropped to 49.1 — a 9.1-point decline from 2024’s score of 58.2. This marks a decrease across all five index categories and places the score 4.9 points below the 10-year average of 54.0. The 2025 score is the third lowest since tracking began in 2009, surpassed only by 2021 (48.5) and 2016 (48.8).

The largest change in views was about confidence in the Anchorage Economy, which decreased by 15.3 points. The planned capital expenditures index declined the second most at 10.6 points, with the gross sales index declining by 9.2 points.

Comparing all indices to last year’s results, business confidence expectations in 2025 are:
• Lower for the overall Composite Index: 9.1 points to 49.1
• Lower for the Anchorage Economy Index: 15.3 points to 34.2
• Lower for Gross Sales Index: 9.2 points to 53.6
• Lower for Net Profits Index: 6.0 points to 53.1
• Lower for Employment Index: 4.5 points to 51.8
• Lower for Capital Expenditures Index: 10.6 points to 52.9