Business Chamber Queensland has released its latest Pulse Report for the June quarter which reveals businesses are delaying investment, slowing recruitment and rethinking expansion plans.

Rising costs and economic uncertainty are forcing many to hold back and brace for borrowing impacts.

The report found:

• Confidence has improved slightly in the June quarter after a sharp fall earlier in the year, but it remains weak and well below historical averages.
• Rising operating costs, high interest rates and softer consumer spending are making it harder to turn a profit and giving businesses less room to invest and grow.
• Businesses are delaying investment, reconsidering expansion and being cautious about taking on more staff while conditions remain uncertain.
• Almost three in ten businesses, 29.4 per cent, say it is possible AI will replace roles in their business within the next five years, up from 18.7 per cent in 2025. A further 24.2 per cent say it is likely.
• Despite the immediate pressures, businesses see real opportunity ahead for Queensland. They are less pessimistic about Queensland’s economic outlook than the national picture, with major infrastructure investment and Brisbane 2032 providing reasons for longer-term confidence.
• Businesses can see the opportunities ahead, but they need to be in a position to invest, employ and grow if Queensland is going to make the most of them.
• Businesses are concerned skills shortages and housing pressures could make it harder to find the people they need and ultimately limit Queensland’s ability to capitalise on future growth.
• Global instability, energy and insurance costs, supply chain pressures and broader economic conditions are adding to uncertainty for businesses.