Business confidence in Queensland is now worse than the levels experienced during the Global Financial Crisis (GFC) in 2008.
Business Chamber Queensland’s March Quarter Pulse Report, released today, recorded the third straight quarterly fall in confidence.
Confidence has been hit by rising fuel costs, supply chain insecurity, cost of living pressures, inflation, restrictive regulatory burden, low productivity and higher interest rates.
Concerns over political and economic stability are at an all-time high, moving from ninth to the top concern.
Around 95 percent of businesses had felt the impact of the fuel crisis with at least 60 percent reporting higher input costs.
Business Chamber Queensland CEO Heidi Cooper said businesses were facing enormous strain.
“The high cost and global shortage of fuel and oil by-products and the subsequent supply chain cost flow-ons emerged as the most prominent concern, acting as a massive burden on every industry due to freight and transportation costs,” she said.
“Queensland businesses can’t keep taking hits and this perfect storm of conditions is putting more and more pressure on an already stretched and stressed business community.”
Ms Cooper said businesses were looking for signs of encouragement in an uncertain and highly challenging operating environment.
Key findings from the Pulse survey included:
- Business confidence in the Queensland economy (12-month outlook) recorded the largest drop in 20 years (worse than GFC levels).
- A third interest rate rise since the previous Pulse survey was cited as a major constraint on confidence and growth, delaying hiring decisions, and capital investments.
- Consumers were becoming more cautious, particularly in retail, tourism and discretionary expenditure.
- General business conditions deteriorated by another 9 points to 36.6, reflecting weaker sales and profitability.
- Sales and revenue fell from from an index level of 45.4 the previous quarter to 36.8 and businesses expect further declines in the June quarter.
Business Chamber Queensland’s State Budget submission contains more than 70 recommendations aimed at strengthening the state’s economic foundations.
The Chamber’s full 2026–27 State Budget submission is available here.
To download the March Quarter Pulse Report, click here.
