Bucking the global trend: Swiss companies are more pessimistic

According to the latest Global Business Optimism Insights Report from Dun & Bradstreet (D&B), sentiment among Swiss companies continued to deteriorate in the second quarter of 2024. The D&B Global Business Optimism Index for Switzerland fell by six percent to 60.8 points, compared to 64.8 points in the previous quarter. Although this was still slightly above the global average of 60.2 points (an increase of five percent compared to the first quarter of 2024 with 57.1 points), it shows a slight negative trend. Sentiment improved worldwide, particularly in industry. The main driver is the end of monetary tightening by the central banks of industrialized countries. For the first time since 2023, companies are also optimistic about their input costs, which is boosting production and significantly brightening sentiment in the manufacturing industry.

For the quarterly report, D&B surveyed around 10,000 companies from 32 countries on their expectations for the second quarter of 2024 with regard to growth, current business and planned investments. The most important results of the five Dun & Bradstreet indices in relation to economic development in Switzerland at a glance:

• Global supply chain problems continue to weigh on sentiment. Dun & Bradstreet's Global Supply Chain Continuity Index fell by eight percent worldwide from 47.9 points in the first quarter of 2024 to 44.1 points. In Switzerland, it fell by five percent from 46.5 to 44.3 points. Geopolitical tensions are affecting the supply chain of one in seven companies worldwide. Companies in the US, France, Italy, the UK and Hungary are most affected.
• According to the D&B Global Business Financial Confidence Index, the financial confidence of Swiss companies reached 60.4 points. Compared to the previous quarter (61.1 points), this is a moderate decline of one percent. However, financial confidence remains slightly above the global average of almost unchanged 59.7 points (first quarter of 2024: 59.9 points). This shows that companies consider their financial situation to be stable despite the difficult economic environment.
• The D&B Global Business Investment Confidence Index for Switzerland fell significantly by ten percent from 53.9 points in the first quarter of 2024 to 48.3 points - the lowest value of all the economies surveyed. Globally, the index fell by five percent from 58.7 to 55.6 points. This reflects the expectation of an easing of monetary policy by the major central banks in the middle of the year and the resulting delay in investment decisions.
• The commitment of Swiss companies to implementing environmental, social and governance (ESG) standards reached 61.2 points according to the D&B Global Business ESG Index. This is an increase of two percent compared to the previous quarter, when the index stood at 60.2 points. Globally, the ESG index fell by three percent from 61.9 to 60.0 points. Despite this decline, sustainability remains an important issue for companies.

"The pronounced decline in the D&B Global Business Investment Confidence Index in Switzerland is surprising given the robust economy," says Macario Juan, Managing Director of Dun & Bradstreet "It appears that the geopolitical uncertainties and ongoing supply bottlenecks are having a greater impact on companies' investment planning here. This could be a sign of subdued economic development in Switzerland."

Source: Dun & Bradstreet