As bad as lockdown: Business confidence at drastically low levels

Queensland business confidence has returned to drastically low levels only seen when the economy was decimated by nationwide Covid lockdowns in March 2020.

Queensland business confidence has returned to drastically low levels only seen when the economy was decimated by nationwide Covid lockdowns in March 2020.

Latest results from The Chamber of Commerce and Industry’s Pulse Survey for the December 2021 quarter show the Omicron strain is costing the Queensland economy an estimated $1.2 billion a week.

Many traders have reported to the CCIQ that the wave of Covid in Queensland since December has caused as much economic harm as the original emergence of Covid.

The quarter’s key finding shows business confidence has plummeted, falling at the second highest rate in the survey’s history.

The decline in Queensland business confidence is reflective of the compounding impact of labour shortages, supply chain disruption and considerably lower consumer spend associated with the Omicron wave.

CCIQ's Amanda Rohan. Pic Annette Dew

The report reveals these new and serious impacts are impacting businesses in the short term as much as border restrictions and lockdowns.

It states that business operating costs and wage levels remain high and as a

result, businesses are now increasingly uncertain about 2022 and their business viability.

CCIQ Policy and Advocacy General Manager Amanda Rohan said businesses were

operating at less than 85 per cent of their pre-Covid conditions as result of low consumer

confidence, infection in the workplace, supply chain disruptions and the border reopening.

“Businesses told us level of demand and economic activity, retaining and recruiting

employees and political and economic instability were their most significant constraints on

business growth,” Ms Rohan said.

“Two in five businesses are not expecting to meet their 12-month goals in 2022 while many

expect profitability to fall again in the March quarter.

“We’re seeing a perfect storm of uncertainty combined with poor consumer confidence and

labour market shortages clashing to create a difficult business environment in Queensland.”

Business feedback indicated Covid-19 impacts were more noticeable in regional

Queensland in the December quarter, specifically due to rising insurance, fuel and other

business input costs.

“Businesses were calling on the State Government consistently throughout 2021 to provide

clear reopening and economic recovery planning as uncertainty would ultimately end up

costing Queensland businesses,” Ms Rohan said.

“We called for access to Rapid Antigen Testing to be freely and widely available for

business, a joint state and federal directly-targeted support package for businesses most

impacted and clarity on what the state’s 90% vaccination milestone meant for business rules

and mandates.

“Businesses told us without those commitments, they would struggle to re-open, stay open

and be viable long-term.

“Now we’re seeing the impact with the majority of Queensland businesses increasingly

concerned about their business viability.”