Swiss companies less optimistic
The Global Business Optimism Index fell to 121 points in Switzerland in the first quarter of 2025 (-14%). The decline is therefore slightly higher than the global fall of 13% (from 131 to 114 points). These are the findings of the latest Global Business Optimism Insights Report by Dun & Bradstreet. For the study, 10,000 companies from 32 countries and 17 sectors were asked about their business expectations.
The Global Business Optimism Index has fallen in all 32 countries surveyed. Export orders have fallen in 26 of them. The USA and mainland China were particularly hard hit, with a drop of 10 percent. The main reasons for this are growing concerns about a weakening economy, rising geopolitical tensions and uncertainties in trade policy.
Companies are more skeptical about supply chain stability and are holding back on investments. The political changes announced by the new US administration are reinforcing this reticence. However, the trend points to a correction of the previously heightened optimism rather than a deterioration in the outlook.
Switzerland: Business expectations declining across the board
- Business optimism: The decline in the Global Business Optimism Index in Switzerland has remained slightly above the global decline of 13%. Germany (-23%), Kenya (-25%), Egypt and Hungary (-23% each) saw the sharpest drop in the index value. The lowest losses were recorded in Poland (-1%), Sweden (-2%) and Australia (-3%).
- Financial confidence: The Global Business Financial Confidence Index has fallen by 17% to 116 points. This means that Switzerland has one of the highest declines in Europe. Hungary (-27%), Germany (-24%) and the Czech Republic (-21%) recorded the greatest losses.
- Willingness to invest: The Global Business Investment Confidence Index fell by 9% to 127 points. This is one point below the global average of 128 points. Across Europe, Poland (+4%) recorded the highest value at 134 points, while Germany (-17%) recorded the lowest value at 110 points.
- Supply chain stability: The Global Supply Chain Continuity Index fell by 15 percent to 105 points. In Europe, Hungary (-30%), the Netherlands (-29%) and the Czech Republic (-26%) recorded the sharpest declines. The reasons for this are high freight costs, a lack of containers, geopolitical conflicts and delayed payments.
- ESG focus: The Global Business ESG Index in Switzerland improved by 2 percent. Australia recorded the highest increase worldwide at 26%, followed by the Netherlands (24%) and Italy (19%). In contrast, Germany recorded the sharpest decline at -15%.
Global outlook: Risks increase significantly
Arun Singh, Global Chief Economist at Dun & Bradstreet, explains: "Companies around the world are making a cautious start to the first quarter of 2025. The high concentration of suppliers is a particular cause for concern - only 51% of companies are confident that they will be able to overcome this. In the previous quarter, the figure was 59%. At the same time, the cost of capital remains high despite falling central bank interest rates - a warning sign of rising credit default risks. The subdued sales and profitability expectations are further exacerbating the situation."
Source: www.dnb.com
