Swiss companies optimistic despite supply chain problems

Swiss companies also occupy a leading position in the area of sustainability. Only supply chain stability shows a negative trend: contrary to the global trend, Swiss companies are experiencing a decline here. The GBOI analyzes the business sentiment, supply chain expectations, financial and investment conditions and ESG initiatives of 10,000 companies from 17 sectors in 32 countries.

More confidence and more stable supply chains worldwide, ESG is gaining in importance

The Global Business Optimism Index continues its upward trend and rose by 12.3% in the third quarter of 2024 compared to the previous quarter to 122 points. Companies are more confident in light of improved macroeconomic conditions, rising sales and growing order numbers. Financial confidence and willingness to invest have also increased worldwide. This trend is particularly evident in economies with an easing of monetary policy. More favorable operating conditions and lower borrowing costs are expected in these countries.

This development is also reflected in the stabilization of global supply chains: the Global Supply Chain Continuity Index rose by 1.2 percent to 115 points. Sustainability has also continued to gain in importance: The Global Business ESG Index, which assesses companies' commitment to ESG aspects, has increased significantly by eight percent to 110 points. Currently, 57 percent of companies are planning to increase their budgets for ESG measures.

Swiss companies are optimistic about the future

• Global Business Optimism Index: Business optimism among Swiss companies increased significantly more than the global average in the third quarter of 2024 (up 17% to 124 points compared to up 12% to 122 points). Medium-sized and small companies have recorded a strong increase in confidence. Large companies recorded a marginal decline in optimism.

• Global Business Financial Confidence Index: The financial confidence of companies in Switzerland rose by 12% to 121 points in the third quarter of 2024, in line with the global average. Both the service sector and the manufacturing industry recorded increases.

• Global Business Investment Confidence Index: Swiss companies' willingness to invest rose by 30% to 128 points in the third quarter of 2024, which is significantly higher than the global average (up 23% to 130 points). Here, too, there were increases in both sectors, services and manufacturing. The increase was particularly strong among medium-sized companies. Large companies, on the other hand, recorded a decline in their willingness to invest.

• Global Supply Chain Continuity Index: Contrary to the global trend, Switzerland has recorded a significant decline in supply chain stability. The Global Supply Chain Continuity Index has fallen by 13 percent to 102 points in this country, while it has risen by 1.2 percent globally. The reasons for this are geopolitical tensions, high transportation costs and climate-related disruptions. Large companies are particularly affected, while the decline is less pronounced for medium-sized and small companies. The stability of supply chains has also deteriorated in the service and manufacturing sectors.

• Global Business ESG Index: The ESG index for Swiss companies rose by 18 percent to 122 points, more than twice as much as the global average (plus eight percent). This puts Swiss companies alongside German companies among the leaders in terms of sustainability activities. New regulations and a growing awareness of sustainability issues are boosting companies' ESG activities, particularly among medium-sized companies and in the service and manufacturing sectors.

Expert assessments of current developments

"The increased business optimism underscores the remarkable resilience of Swiss companies, which are holding their ground despite global challenges such as geopolitical tensions, regulatory changes, inflationary pressures and supply chain issues," said Dirk Radetzki, Chief Regional Officer, Central Europe at Dun & Bradstreet. "Companies should closely monitor current developments and take advantage of opportunities in more dynamic sectors, especially in lower growth markets. A data-based strategy is essential in this volatile environment to minimize risks and tap into new potential."

"The renewed optimism, particularly in the area of ESG, shows how strongly regulatory developments are influencing corporate sentiment. This trend is particularly noticeable in Switzerland, where companies are actively addressing the new requirements," says Arun Singh, Global Chief Economist at Dun & Bradstreet. "To remain globally competitive, companies should follow these developments closely. It is important to adhere to legal requirements, ensure compliance with regulations and understand the factors that further strengthen this optimism."

Source: www.dnb.com