Dun & Bradstreet Launches Global Business Optimism Insights
06 September 2023 - 10:05PM
Business Wire
Dun & Bradstreet® Global Business Optimism
Insights point to divergent global growth in Q3 2023, with
deterioration in advanced economies and improvement in emerging
economies
Dun & Bradstreet (NYSE:DNB), a leading global provider of
business decisioning data and analytics, today announced Dun &
Bradstreet Global Business Optimism Insights, its inaugural
quarterly report gauging the optimism levels of businesses around
the world. The report provides a unique and comprehensive view into
the thinking behind the operational and investment expectations of
business leaders.
Dun & Bradstreet Global Business Optimism Insights is an
amalgamation of five indices for 32 economies including the Global
Business Optimism Index, Global Business Supply Chain Continuity
Index, Global Business Financial Confidence Index, Global Business
Investment Confidence Index, and Global Business ESG Index.
The Q3 2023 Global Business Optimism Insights report finds that
the global economy is expected to grow, though slower than it did
last quarter, due to the decline in advanced economies in contrast
with the growth in emerging economies. Nordic businesses are the
most pessimistic about their supply chain continuity, followed by
U.S. based businesses. The Global Business Investment Confidence
Index has improved the most for Russian businesses, yet it remains
the lowest among the 32 economies.
Additional key insights:
- The Global Business Optimism Index declined 1.5% in Q3
2023, compared with Q2 2023; it declined 2% for advanced economies
and grew 0.4% for emerging economies, indicating that businesses
exposed to advanced economies should exercise caution and revisit
their growth strategies, such as enhancing client coverage across
emerging economies. Economic growth will be asymmetric, posing
risks and presenting pockets of opportunity. The impact of the
economic cycle will be amplified by the depth of corporate
linkages, including suppliers, vendors, and customers, spread
across other regions.
- Moreover, businesses across Financial Services, Automotive, and
Metals & Mining are least optimistic, whereas those across
Utilities, Trade, and Hospitality are the most optimistic for
growth.
- The Global Business Supply Chain Continuity Index
declined 5.8% in Q3 2023, compared with Q2 2023, due to increased
delivery time and cost. Businesses need to consider supply chain
linkages to have a comprehensive view of their upstream and
downstream risks. Given the economic uncertainty and regulations,
it is advisable to review supply chain resilience and look for
opportunities presented by reshoring, nearshoring, and
friendshoring trends.
- Strengthening climate and emission regulations have lowered
supply chain continuity for businesses in Mining & Metals,
Construction, and Transportation, reiterating the importance of
sustainability across all tiers of suppliers.
- The Global Business Financial Confidence Index declined
marginally in Q3 2023 due to continued stress on balance sheets and
unprecedented monetary tightening, suggesting that businesses must
recognize that the current economic landscape necessitates a more
proactive approach to credit risk mitigation. Having visibility
into credit risk across the entire global portfolio can help inform
treatment strategies and prioritize collections.
- Businesses in the Czech Republic, France, Mexico, Spain, and
the U.S. are the least confident about their financial conditions,
whereas those in Japan, South Korea, and Turkey are the most
confident.
- The Global Business Investment Confidence Index
increased slightly in Q3 2023 as businesses expect the capacity
utilization rate to go up this year, indicating optimism around
investment recovery through 2023.
- Technology and R&D investments top the list of expected
capital expenditures, with nearly 40% of businesses anticipating
6-10% growth in investments for these categories, indicating that
businesses exposed to these sectors can leverage underlying growth
opportunities.
- The Global Business ESG Index for continental Europe
lags the U.S. and Asia due to differing energy security interests
and approaches to renewable energy within the region.
“The declines in Global Business Optimism, Supply Chain
Continuity, and Financial Confidence indices reflect the underlying
stress in the global economy,” said Arun Singh, Global Chief
Economist, Dun & Bradstreet. “While the unprecedented monetary
tightening has helped control inflation in some countries, it has
also introduced the specter of an economic slowdown and stress in
the balance sheets of businesses. However, the global economy has
not fared as badly as feared, as most businesses anticipate a 2% to
6% growth in their investment levels across technology, real
estate, product development, and sustainability initiatives,
offering hope for improvement in economic conditions.”
Dun & Bradstreet Global Business Optimism Insights were
created by synthesizing findings from a survey of approximately
10,000 businesses across 32 economies, along with insights from Dun
& Bradstreet’s proprietary data and economic expertise. The
indices range from 0 to 100, with a reading above 50 indicating an
improvement and below 50 a deterioration.
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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Media: Dawn McAbee 904-648-6328 Mcabeed@dnb.com
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