Queensland businesses are less confident about the next 12 months despite enjoying solid sales and revenue.
Some 42 per cent of businesses say sales and revenue rose in the June quarter, according to the Chamber of Commerce and Industry of Queensland (CCIQ).
However, their confidence has fallen as rising labour and operating costs continued to eat away profits.
The CCIQ's Cherie Josephson says half of the businesses surveyed reported a fall in profitability over the quarter.
"We saw a decoupling of business performance and confidence; a significant deterioration of business confidence but solid business performance with similar expectations for the September quarter," she said.
While businesses' main concerns are labour and operating costs rising, other factors hitting confidence.
Ms Josephson said rising inflation, interest rates, energy costs as well as supply chain disruptions had dented sentiment.
More than nine in 10 businesses reported rising fuel prices and almost 83 per cent said their insurance costs jumped in the June quarter.
Supply chain and logistics costs increased for 79.4 per cent of firms surveyed.
In the three months to June, electricity, raw materials and stock costs rose for more than 72 per cent of respondents.
"While sales are strengthening, businesses' ability to grow is being held back by continued rising operating costs," Ms Josephson said.
"Businesses need certainty about what support they'll be offered for rising operating costs, including energy, insurance and fuel costs if there was to be any sustained improvement in business confidence over the next 12 months."
Australian Associated Press
