Its latest Pulse survey showed that interest rates and economic activity re-entered the top five list of concerns among businesses. Retaining and recruiting staff was still the number one concern.

Chief executive Heidi Cooper said interest rates had not raised this level of concern since 2010.

She said rates were impacting profits through servicing costs as well as consumer behaviour. Macroeconomic issues were impacting business confidence in relation to the state and national economies.

“That’s despite satisfactory business performance,” Cooper said. 

“While general business conditions and sales and revenue are steady, wider challenges including workforce and high business operating costs mean businesses have weak economic confidence in the next 12 months.” 

Across other indicators, eight in 10 businesses reported higher operating costs in the March quarter, with expectations of further increase in the June quarter, while close to 60% of businesses indicated their labour costs also rose in the three months to March.

“We know the cost of doing business is really putting pressure on businesses’ ability to thrive day-to-day and long term,” Cooper said. 

“These high costs mean six in 10 businesses told us their profitability weakened during the March quarter.” 

“It is an important time for business in Queensland and it is essential that businesses are supported to meet current day headwinds while ensuring the state’s business community has the confidence they need to plan for the future.  ”