The divide between the south-east corner and regional Queensland has widened, according to the latest CCIQ Pulse survey of business conditions.
The June quarter report also showed Treasurer Jackie Trad's first budget was a 'missed opportunity' to boost business confidence across Queensland.
"Labor's only economic plan for Queensland is increased taxes and it's clearly not working," Mr Mander said.
"Businesses are still holding back investment, which is why we have the second worst unemployment rate in the nation.
"High energy costs continue to put cost pressures on small business owners and affect profitability.
"Union influence over policy actions is also a major concern, which isn't surprising given the Palaszczuk Labor Government is owned lock, stock and barrel by the union bosses.
"This is the latest in a string of bad economic reports that show how out of touch Annastacia Palaszczuk is with Queensland small businesses."
Mr Mander said the LNP was the only party with a positive economic plan for Queensland.
"We know that you can't tax your way to growth," Mr Mander said.
"Our economic plan focuses on five key priority areas of delivery, including busting congestion, cheaper electricity and fuel and no new taxes.
"Queenslanders shouldn't have to wait over two years until the next state election to see economic decisions that will boost investment and create more local jobs.
"Small businesses are continuing to suffer from Annastacia Palaszczuk favouring her union mates, which shows she is only really interested in protecting one job – her own."