Data: Business responds to economic green shoots with growing confidence, but optimism is fragile as profitability and productivity remain sluggish  » Business Chamber Queensland
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Data: Business responds to economic green shoots with growing confidence, but optimism is fragile as profitability and productivity remain sluggish 

By Emma Clarke

19 June 2025

New data shows Queensland businesses have the highest economic confidence in more than three years alongside stronger general business conditions, while profitability and productivity scores struggle to keep pace. 

Business Chamber Queensland’s Pulse Report of business conditions for the March quarter shows confidence in the future of the state’s economy and general business conditions are at the strongest levels since 2022, having now reached satisfactory standards.  

After persistently weak business confidence levels in Queensland for several years, this recent uptick has been attributed to interest rate relief, some levelling of inflation and infrastructure certainty around the Brisbane 2032 Olympic and Paralympic Games. 

But despite this increase in confidence, businesses indicate continually challenging operating conditions, high wage costs, low productivity, and business input costs including energy and persistently weak profitability, risk this economic confidence being realised.  

This risk is compounded with geopolitical pressures including trade tariffs. 

Business Chamber Queensland CEO Heidi Cooper said key business measures like sales, revenue and employment levels improved in the March quarter and businesses expected further improvement before the end of the financial year. 

“These results are really promising and show businesses are looking to the future of their operations with growing optimism,” Ms Cooper said. 

“Overall business confidence in the future of both the state and national economies has improved, with the highest levels recorded since the state came out of the COVID economic crisis in 2022. 

“Right now, confidence in the Queensland economy is surging further ahead of the national economy.   

“Increased business confidence is reflected in an improvement in sales and general business conditions alongside recent interest rate cuts and expectations for further softening as well as strong economic policy, an ambitious infrastructure development plan and record spend ahead of the Games,” Ms Cooper said. 

Business in north and central Queensland have increasing confidence in the state economy. 

“But there is still work to do, especially in managing the day-to-day challenges of the current operating environment and setting up long-term economic growth to improve business profitability and address low productivity across all parts of the economy.” 

The data shows businesses’ top five constraints on growth all relate to historically high business costs; wage costs, taxes and government charges at all levels and increased insurance premiums.  

“And continuing a 12-month trend, businesses reported little change from satisfactory average selling prices, which indicates many businesses are absorbing these costs and taking a hit to their profitability, instead of passing the full increases onto consumers and supply chains,” Ms Cooper said.  

“We are definitely seeing some green shoots in the Queensland economy and the business community is responding to this.  But this optimism is fragile and coming from a sustained low base. There is still work to do to give businesses long-term, predictable relief from high costs and confidence to invest in the future.”  

Ms Cooper said the state’s business community was looking to the upcoming state budget for sustained, long-term and responsible economic policy management that would see these expectations realised in the future. 

“The state’s business community is calling for a commitment to measures that will improve their day-to-day operating challenges and support their forward economic confidence,” Ms Cooper said.  

“Operating cost relief, tax reform and red tape relief will allow businesses to manage their operations and staff day-to-day while productivity enhancing measures like improved digital connectivity and support for businesses to grow capability and innovate will allow them to realise this confidence. These were among the more than 100 recommendations we made in our State Budget submission.  

“There is enormous opportunity ahead in Queensland and it’s critical for business that the opportunity for policy reform isn’t missed. It’s positive to see businesses have growing confidence, but there is work to do for that confidence to be a reality. 

“Business wants to be part of the Queensland growth story. We need a strong and thriving business community to realise the opportunity in our state.” 

“Responsible economic management as well as initiatives to foster growth and productivity in the FY26 budget can see this happen. 

“Queensland businesses need a budget that puts business first.” 

See Business Chamber Queensland’s State Budget FY26 Submission. 
See Pulse Report for the March 2025 quarter.  

Business story 

Far North Queensland accommodation and restaurant business Daintree Siesta owner Tamara Scenna says the tourist season is looking more promising in the Daintree this year following a challenging 2024 season after Tropical Cyclone Jasper.    

“Coming into the busy season, we’re optimistic things will be better than last year as we haven’t faced the same weather challenges. We’re coming from such a low baseline – anything should be better than that,” Tamara said.   

In 2024, following Tropical Cyclone Jasper, road closures, infrastructure damage and concerns about access to Far North Queensland saw many tourists cancel or delay visiting. 

“This year, we’re expecting more people will come, but we’re still concerned about the possible impacts of flooding and road closures down South, as well as the Jardine Ferry re-opening being delayed further North,” Tamara said.  

Tamara and her husband, Bruno have been running Daintree Siesta for almost 4 years and are cautiously optimistic for the future of their business but are facing macro and micro-economic challenges, including rising costs and a lack of long-term investment in infrastructure maintenance and modernisation. 

“We are looking forward to seeing what the recently announced Destination 2045 investment in ecotourism and infrastructure will look like in our area,” Bruno said. 

“Our expenses are rising and getting resources up here can be difficult. 

   

“Many in the community feel there hasn’t been enough investment in tourism infrastructure. Some of the national park areas still haven’t re-opened and tourists are starting to look for other places to go including outside of Queensland. 

“We’re also no longer able to get business insurance, aside from public liability. After Cyclone Jasper we, and many other businesses up here, are being told we can’t get coverage. 

“For businesses to grow, they need to invest, but why would you significantly invest if you can’t get insurance? It’s too big of a risk. Instead, our focus has primarily been on improvements through upcycling and rejuvenating existing items such as our ‘new ‘croc’ float pool’,” Bruno said. 

 Ahead of Tuesday’s State Budget announcement, Business Chamber Queensland has advocated for investment in reinsurance pools as an insurance of last resort to address gaps in coverage and help businesses like Daintree Siesta mitigate the risks of disaster. 

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