Dun & Bradstreet Q3 2024 Global Business Optimism
Insights report finds improved growth optimism despite continued
geopolitical tensions and supply chain disruptions
LONDON, July 9, 2024
/PRNewswire/ -- Dun & Bradstreet (NYSE:DNB), a leading global
provider of business decisioning data and analytics, today released
its Q3 2024 Global Business Optimism Insights report. The latest
quarterly report shows increased optimism across all five indices –
business, supply chain continuity, financial and investment
conditions, and ESG initiatives - for the first time since the
launch of the report in Q3 2023.
Worldwide, businesses have rallied against persistent
geopolitical tensions and supply chain disruptions, with global
business optimism and financial confidence rising by more than 12%.
Additionally, the steps taken by most central banks towards easing
interest rates have bolstered optimism, with global financial
confidence increasing more than 23%. Driven by improved
macroeconomic conditions, businesses are notably optimistic about
sales and new orders, while financial and investment confidence has
surged due to expectations of favorable operating conditions and
reduced borrowing costs.
"The improved optimism among businesses demonstrates resilience
in navigating global disturbances by adapting to the 'new normal'
and leveraging emerging opportunities," said Neeraj Sahai, President of Dun & Bradstreet
International. "Surge in investment confidence among businesses
indicates higher capital requirements and a more buoyant M&A
environment for inorganic growth. As we look with an eye toward the
next quarter, it should be with cautious optimism, as policy
uncertainty associated with upcoming elections globally
persists."
Regionally, business optimism in the U.S. showed a notable
recovery, rising by nearly 17% for Q3. This was reinforced by
service-oriented businesses, particularly within the information
and communications technology (ICT) sector where optimism increased
by 51%. Germany witnessed a nearly
10% increase, supporting the overall European economic sentiment.
The Asia-Pacific region also saw
prominent increases particularly in Indonesia (20%) and Japan (22%). Conversely, the U.K. saw a nearly
4% decline in business optimism.
Key findings from the Q3 2024 report's five
indices*:
- The Global Business Optimism Index increased 12.3%
on the back of expected growth in sales, new orders, and favorable
input costs amid easing global inflation. The increase in optimism
is in sync with the latest upward revisions in global GDP forecast
for 2024 by multilateral agencies. Globally, ICT, Wholesale &
retail, and textile are the most optimistic sectors.
- The Global Supply Chain Continuity Index saw a
marginal improvement of 1.2% stemming from businesses adjusting to
the new supply chain environment, which continues to be disturbed
by geopolitical tensions, longer shipping routes and
climate-related disruptions. Large businesses' optimism
deteriorated significantly reflecting the challenges of an
interconnected global supply chain. However, smaller businesses are
more optimistic as they expect to reduce their supplier
concentration risk.
- The Global Business Financial Confidence
Index improved 12.3% as businesses are optimistic about
their operating conditions and liquidity risk. Smaller
businesses, that may previously have been relatively constrained in
their approach to liquidity risk management, are now more
optimistic about cash flow management given growing expectations of
falling borrowing costs.
- The Global Business Investment Confidence
Index increased 23.3%, signaling a meaningful uptick in
optimism for capital spending, backed by an accommodative
global monetary policy. Globally, small and medium-size businesses
were more confident about the environment for M&A activity than
larger businesses, likely because they see themselves as
potentially attractive acquisition targets, especially promising
startups in digital, fintech, and AI.
- The Global Business ESG Index increased 8.0% as
businesses look to re-engage their sustainability
initiatives. In the survey, more than one in two respondents
indicated increased funding for ESG-related activities.
*Descriptions and information about the indices can be found on
page 23 of the report.
"Improvement across all five indices indicates the optimism for
an accommodative monetary policy regime globally among businesses,"
said Arun Singh, Global Chief
Economist, Dun & Bradstreet. "This optimism is further fueled
by improved macroeconomic conditions as businesses are notably
upbeat about sales and new orders. Further, improvement in supply
chain continuity indicates that businesses are adapting to the
ever-evolving global landscape."
About the Global Business Optimism Insights Report
The Global Business Optimism Insights report is a synthesis of
data from a comprehensive survey encompassing 32 economies,
covering approximately 10,000 businesses and 17 sectors, alongside
insights from Dun & Bradstreet, leveraging the firm's
proprietary data and economic expertise. The report is an
amalgamation of five indices which reflect overall business
optimism and expectations about supply chain continuity, financial
and investment conditions and ESG initiatives. An index reading
above 100 indicates an improvement in optimism relative to the base
year (Q3 2023 to Q2 2024), while an index reading below 100
signifies a deterioration in optimism.
View the full report here.
About Dun & Bradstreet
Dun & Bradstreet, a leading global provider of business
decisioning data and analytics, enables companies around the world
to improve their business performance. Dun & Bradstreet's Data
Cloud fuels solutions and delivers insights that empower customers
to accelerate revenue, lower cost, mitigate risk, and transform
their businesses. Since 1841, companies of every size have relied
on Dun & Bradstreet to help them manage risk and reveal
opportunity. For more information on Dun & Bradstreet, please
visit www.dnb.com.
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