Data and Analytics firm Dun & Bradstreet released its Q2 2024 Global Business Optimism Insights Report, showing a sustained positive trend in the global business outlook as evidenced by the 5.4% rise from last quarter in the company's Global Business Optimism Index.
Despite this business optimism, the report reveals declining optimism in the Global Supply Chain Continuity Index, which slipped 8% for Q2, following a 6% decline in Q1. This decline is the result of shipments being rerouted due to geopolitical events across major trade routes. The data shows that 1 in 7 businesses were impacted by supply chain disruption. However, businesses are adapting by implementing contingency plans and diversifying their supplier base across different regions.
“The continued improvement in overall business optimism indicates that businesses are regaining stability after grappling with inflationary pressures and global monetary tightening,” said Dun & Bradstreet International President Neeraj Sahai. “Today's supply chains face unprecedented risks from volatile trade relations, civil unrest, extreme weather, and disasters such as the recent incident in Baltimore. Increasingly businesses are mitigating these risks by leveraging data to identify opportunities for reshoring, nearshoring, and friend shoring.”
Additional findings from the Q2 report reveal:
“Optimism regarding input costs has reached an all-time high, contributing to a surge in optimism among manufacturers worldwide, which has increased by 17%,” said Arun Singh, Dun & Bradstreet's Global Chief Economist. “Nevertheless, persistent geopolitical disruptions have made significant impacts on supply chains, and now they may also impede investment decisions. With half of the world set to vote in 2024, businesses are anticipated to closely monitor the evolving policy landscape throughout the year. It is crucial for them to strategically prepare for and navigate these challenges.”
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 that reflect overall business optimism and expectations about supply chain continuity, financial and investment conditions, and ESG initiatives. The indices range from 0 to 100, with a reading above 50 indicating an improvement and a reading below 50 indicating a deterioration in optimism.