Business confidence in Queensland is continuing to decline off the back of “persistent” cost increases and challenging operating conditions.
The Business Chamber Queensland quarterly Pulse Survey, released this week, showed that confidence fell in the December quarter 2025.
This confirmed the falling confidence trend also evident in the September quarter.
Chamber CEO Heidi Cooper said business had entered 2026 under mounting strain.
“Many businesses are operating in an environment of persistent cost increases, regulatory complexity and workforce shortages,” Ms Cooper said.
“Across every industry and region in Queensland, businesses are telling us the same story; operating costs are rising faster than revenues, productivity growth is constrained, and skills shortages are severe.”
Ms Cooper described the conditions as a “perfect storm” of issues when firms should be scaling, investing and planning for future opportunities.
The Chamber is calling on the Queensland Government to deliver a pro-growth, pro-productivity 2026–27 State Budget to encourage investment.
The key findings in the Pulse Survey were:
- Business confidence in the Queensland economy (12‑month outlook) fell for the second consecutive quarter but is still well above this time last year.
- The release of CPI data ahead of the RBA’s interest rate increase impacted confidence.
- Consumers are expected to reduce spending due to rising costs of living.
- General business conditions deteriorated, reflecting weaker sales and profitability.
- Sales revenue declined for the second consecutive quarter, slipping below the 10-year average. This is unusual for the December quarter, which is normally a robust trading period.
- Profitability went backwards, reflecting a decline in sales and revenue and continuing high business operational and labour costs.
The Chamber’s full 2026–27 State Budget submission is available here.
Download the December Quarter Pulse Report here.
