The CCIQ said its confidence index in the December quarter had fallen 16.9 points and the expected boost from reopening the borders had fallen flat.

About 40 per cent of businesses were now reassessing their future and were not expecting to meet previously defined goals for 2022. There was an expectation that profits would fall again in the March quarter, which would mean 12 months of declining profits.

Much of the blame has been directed at the Government and the lack of planning and clarity related to pandemic regulations.

It found that businesses were operating at 85 per cent of the pre-Covid level and that regional areas were more profoundly impacted than the city. Rising insurance and fuel costs were big factors in the regions.

The chamber said business was being impacted by labour shortages, supply chain disruptions and low consumer spending and confidence in the future of the state and federal economies “had crashed”.

A Roy Morgan business confidence survey released last week showed a similar crash in business sentiment.

CCIQ policy and advocacy general manager Amanda Rohan said respondents to the survey said demand and economic activity, retaining and recruiting employees and political uncertainty were the most significant constraints on business growth.

“Two in five businesses are not expecting to meet their 12 month goals in 2022 while many expect profitability to fall again in March 2022,” Rohan said.

“We’re seeing a perfect storm of uncertainty combined with poor consumer confidence and labour market shortages classing to create a difficult business environment in Queensland.”

She said the chamber had consistently called for clearer Covid recovery planning because uncertainty around time frames and regulations would end up costing business.

“Now we are seeing the impact with the majority of Queensland businesses increasingly concerned about their business viability,” Rohan said.