But CCIQ director of advocacy Nick Behrens said there was still considerable room for improvement, as shown in the October Queensland Economic Update.

"The level of caution being exercised by consumers, as indicated by weak retail spending and household consumption, is indicative of the soft conditions currently being experienced by businesses in many sectors of the economy," Mr Behrens said.

"While indicators do suggest improving conditions, there is still further work required in restoring confidence in the economy, and encouraging a return to spending on goods and services."

CCIQ's Economic Performance Index showed overall economic performance in Queensland was still weak compared to other states - particularly NSW and Victoria - but momentum was starting to shift after 12 months of decline.

"This is a welcome sign and should offer encouragement to small business owners, and especially those operating in retail, hospitality and tourism sectors that are approaching the most critical trading period of the year," Mr Behrens said.

While the index was below the five-year average, it was tracking in neutral territory.

Shadow Treasurer Scott Emerson said the update highlighted the persistent weakness of the economy under the Palaszczuk government.

"Queensland's economic performance is recognised as 'weak' and ranked behind other states," Mr Emerson said.

Mr Emerson said the update indicated there were some improvements in certain parts of the state's economy, following consistent declines.

"This improvement is more a result of external factors after a tough 12 months in Queensland of "sustained falls", and the update highlights a lot of risks to the outlook," he said.

But Treasurer Curtis Pitt said the CCIQ's report was the latest to confirm a "string of positive data", following reports from Westpac, the National Australia Bank, Sensis and the Australian Bureau of Statistics.

"The Palaszczuk Government has worked hard to bring confidence back in Queensland following the LNP's mass job cuts, reduced infrastructure spending and slowing of the economy," Mr Pitt said.

Mt Pitt said the Queensland economy was transitioning to a post-mining boom era.

"But the recent positive state final demand figure shows our domestic economy has turned the corner and is improving," he said.

"We still face challenges, especially in regional Queensland, but the Palaszczuk government will continue to work hard to continue the state's positive economic progress and growth."

Mr Pitt pointed to the first home owners grant and the $100 million Regional Back to Work Program as positive initiatives that were making a difference.

Meanwhile, ratings agency Moody's has reaffirmed Queensland's Aa1 credit rating with a forecast economic growth of 3.5 per cent in 2015-16.

"Despite some tough domestic and international economic conditions, confidence and growth are rebounding in Queensland under our economic plan," Mr Pitt said.

The report also shows retail trade continued to improve, rising by 0.4 per cent - but was weaker than the national average of 2.6 per cent - and residential property prices continued to rise.

Unemployment in Queensland remained unchanged at 6.3 per cent, but higher than the national rate of 5.7 per cent.

At 6.3 per cent, the unemployment rate was only surpassed by South Australia (6.6 per cent) and Tasmania (6.7 per cent).

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