Business Chamber Queensland calls on the community to support local business as confidence takes a hit 

By Emma Clarke

New data shows business confidence in Queensland has softened, reversing recent improvements in 2025, and reflecting a series of compounding micro and macro-economic pressures including inflation, costs, and global economic and geopolitical factors. 

Business Chamber Queensland’s Pulse Report of business conditions for the September quarter 2025, out now, shows expectations for economic growth have not been realised since June, with confidence in both the state and national economies falling. 

Business Chamber Queensland CEO Heidi Cooper said it’s never been more important to support local businesses.  

“Queensland businesses are feeling the pinch from multiple directions – household budgets under strain, energy and insurance costs increases, low productivity, regulatory and compliance pressures, and pervasive skill shortages,” Ms Cooper said. 

“Uncertainty around interest rates is compounding these challenges, with businesses reporting that even speculation about rate movements leads to tighter spending by consumers concerned about cost-of-living pressures. 

“Despite these pressures, business confidence is still above 2024 levels and the green shoots we saw in the data as recently as June can still be realised for businesses in the new year, especially with a much-anticipated boost from the holiday season.  

“By shopping local, Queenslanders can boost their local economy, create jobs for their community, and restore confidence.” 

Ms Cooper said Queensland businesses remain more optimistic about the state economy than the national outlook, reflective of state-based factors like infrastructure commitments.  

“The gap between Queensland and national confidence is now the third highest ever recorded, reflecting the growth in Queensland,” Ms Cooper said.  

“Infrastructure investment and major events continue to support Queensland’s outlook, but businesses need relief from persistent micro and macro-economic pressures to support and sustain growth.” 

Business performance measures like sales and revenue, profitability and employment decreased during the quarter and, while satisfactory, are below the 10-year average. At the same time operating costs and labour costs both increased, exacerbating the decline in general business conditions.   

“Workforce pressures have been among the most significant constraints on business growth for years and businesses are again telling us it’s their most pressing concern while wage costs also impact employers,” Ms Cooper said.  

“We’ve also heard from businesses that global market uncertainty and trade shifts are continuing to have an impact, even at a local level. 

“While confidence remains above last year’s levels, businesses are calling for policy certainty and cost relief to unlock investment and growth opportunities in 2026. 

“As we approach the holidays, I encourage everyone to support and celebrate Queensland made products, services and experiences, and the businesses that produce them every day. This Christmas, get out and support local.” 

Key data 

• 12-month outlook softens: Confidence in the Queensland economy fell but remains 16.1 points higher than this time last year and above its 10-year average. 

• General business conditions: Dropped 5.5 points to 47.6, reflecting weaker sales and rising operating and labour costs. 

• Sales revenue: Declined to an index of 49.1, down from 54.2 in June, with expectations for further falls as interest rate uncertainty tightens spending. 

• Profitability: Fell sharply by 8.4 points to 35.7, slipping below the 10-year average. 

• Operating costs: Increased to 78.6, reversing recent moderation and remaining well above the long-term trend. 

• Labour costs: Rose to 76.2, driven by wage increases and workforce shortages. 

• Employment levels: Dropped below 50, indicating contraction, with further declines expected in the December quarter. 

• Top business constraints: Skill shortages (65.8), insurance premium costs (64.7), and direct wage costs (62.7) ranked as the most severe impediments to growth. 

• Macro pressures: Cost-of-living constraints, rising energy and utility costs, housing shortages, and global geopolitical instability continue to weigh on confidence and investment decisions. 

• Interest rate uncertainty: Businesses report that uncertainty alone, regardless of actual rate changes, is causing both consumers and businesses to tighten spending belts. 

Download the September quarter Pulse Report here.