Improving market dynamics have provided relief, indicating
confidence in both domestic and global economic
conditions
LONDON, Oct. 11,
2024 /PRNewswire/ -- Dun & Bradstreet (NYSE:DNB),
a leading global provider of business decisioning data and
analytics, today released its Q4 2024 Global Business Optimism
Insights report. The report, fielded in Q3 2024, found a 7%
increase in business optimism quarter-over-quarter, driven by
gradual easing of inflation rates and favorable borrowing
conditions.
Nearly four in five businesses are expressing increased optimism
in domestic and export orders, capital expenditures and financial
risk due to a combination of easing financial pressures, shifts in
monetary policies, robust regulatory frameworks and higher
participation in sustainability initiatives.
U.S. businesses recorded a nearly 9% rise in optimism, aided by
falling inflation and expectations of further rate cuts. Similarly,
business optimism in the U.K. and Spain showed notable recoveries as their
respective central banks initiated monetary easing, rising by 13%
and 9%, respectively. Emerging economies, such as Argentina and India, saw jumps in optimism levels due to
declining inflation and increased domestic demand respectively.
"While overall global business optimism has increased and
inflation has abated, it's important to recognise that geopolitics
contribute to economic uncertainty," said Neeraj Sahai, President of Dun & Bradstreet
International. "Industry-specific regulatory risks and more
stringent data requirements have emerged as the top concerns among
a third of respondents. To mitigate these risks, businesses are
considering diversifying their supply chains and markets to manage
regulatory risk."
Key findings from the Q4 report's five indices
include:
- The Global Business Optimism Index increased by 7.3%
over Q3 2024. This is a significant increase with 75% of
businesses, especially smaller businesses, expressing confidence in
sales and domestic and export orders ahead of the holiday season.
The real estate (12.5%) and utilities (10.4%) sectors saw the
highest jumps in optimism levels.
- The Global Supply Chain Continuity Index improved 6.8%,
stemming from businesses reducing burdens on their supply chains by
adopting nearshoring, using alternative and less-congestive routes,
and relying on domestic supplies. One in four businesses in the
U.S., as well as Switzerland and
Spain, are considering
diversifying supply chains and markets as their preferred strategy
to manage their regulatory risk.
- The Global Business Financial Confidence Index increased
6.3% due to expectations of improved financial conditions and
reduced borrowing costs as many economies have started to cut
interest rates. Confidence in the U.S. and South Korea notably improved by 5.2% and
11.2%, respectively, on indications of their central banks pivoting
towards looser monetary policies.
- The Global Business Investment Confidence Index improved
3.6%, showcasing optimism in capital spending centered around signs
of global monetary policies becoming more accommodative, along with
improvement in macroeconomic activities.
- The Global Business ESG Index increased by 6.1%,
stemming from businesses' efforts to meet regulatory requirements,
stricter disclosure mandates and heightened investor awareness.
Globally, stricter environmental regulations, such as the European
Union's Carbon Border Adjustment Mechanism and the German Supply
Chain Due Diligence Act, are among top concerns for 29% of
businesses, resulting in almost one in four conducting risk
assessments or implementing regulatory compliance strategies.
Descriptions and information about the indices can be found on
page 24 of the report.
"Businesses are increasingly confident as borrowing costs
decline, boosting optimism for higher sales, stronger exports, and
reduced financial risks," said Arun
Singh, Global Chief Economist at Dun & Bradstreet. "This
confidence is driving capital investments, with easing supply chain
pressures supporting growth in the year's final quarter."
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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