Queensland business profits have dropped to their lowest levels since the pandemic.
The latest Business Chamber Queensland Pulse survey data showed profitability declined in the September quarter, reflecting continuing soft sales and revenue and high operational and labour costs.
Business Chamber Queensland CEO Heidi Cooper said profitability was only lower during COVID, with an expected improvement in the December quarter, but not beyond weak levels.
“Compounding and significant business pressures have pushed profitability to near historical lows,” Ms Cooper said.
“Profitability over the last 18 years has only been lower during the depths of the COVID economic crisis.
“This is driven by near-record high operating costs, with four in five businesses recording yet another increase in the September quarter and another 72 percent seeing an increase in labour costs.”
Ms Cooper said businesses reported an increase in forward economic confidence immediately after the State election, but actual conditions for the quarter were persistently challenging.
She said business confidence in the future of the Queensland economy improved for the second consecutive quarter, and again immediately following the October election.
“But there is still a long way to go – despite improving, confidence is still weak and business conditions will need to significantly change to lift confidence further, and for that confidence to be realised.
“It’s reflective of a really tough business operating environment in Queensland. Despite this, businesses are looking to the December quarter with some optimism.”
Ms Cooper said overall business conditions could not sustain the improvement recorded in the June quarter and declined marginally in the September quarter.
She said the data showed businesses were looking to the new government for the critical business and economic policy and reform they needed to manage day-to-day and long term.
“Immediately after the October 26 election result, our data showed a lift in forward economic confidence, reflective of a new opportunity,”
Ms Cooper said there was a significant shift in business constraints in the September quarter, with the top five pressures all reflective of costs, including taxes and charges across all levels of government, wage costs and insurance premiums.
She said businesses also reported political and economic stability, consumer demand and economic activity, workforce pressures, regulatory burden and restrictive IR laws were impacting their ability to grow and scale.
Download: Business Chamber Queensland – Pulse Sept 2024 quarter
