Inflation Hits Business Confidence
The latest Chamber of Commerce and Industry Queensland Pulse Survey results show business confidence remaining weak despite strong revenue.
Businesses reported improved spending and demand during the December quarter, with 37% of respondents saying sales and revenue had increased.
However, that good news has been undercut by rampant cost pressures eating away at income and putting a hand brake on profitability.
Inflation is hitting businesses hard on multiple fronts including:
- Wages and labour costs
- Costs of goods and services
- Fuel and energy prices
- Stock shortages caused by supply chain disruptions and delays.
Beyond inflation, macroeconomic factors are also hindering business confidence. This pessimism is driven by several factors including:
- Interest rate rises
- Fear of a recession
- Labour shortages and retention
- Lack of affordable housing
- Geopolitical issues including war and natural disasters.
The affect of these cost and macroeconomic pressures is such that the economic outlook for the next 12 months remains weak.
On a positive note the report suggests labour and operational costs may have peaked, with all eyes on the March quarter results for signs of improvements in these indices.
Download the December quarter Pulse Survey report here.