Business climate and investment optimism in Switzerland above the global average

Increased consideration is being given to diversifying supply chains in order to manage regulatory risks. Growth in ESG is slightly slower than in the previous quarter. The GBOI analyzes the business sentiment, supply chain expectations, financial and investment conditions and ESG initiatives of 10,000 companies from 17 industries in 32 countries.

Stabilization of supply chains strengthens global business prospects

The Global Business Optimism Index continues its upward trend, rising by 7% in the fourth quarter of 2024 compared to the previous quarter. Over 75% of companies - especially smaller ones - are optimistic about their order situation as well as domestic and export orders. The hospitality and food industries are particularly confident in this regard.

This positive development is also reflected in the stabilization of global supply chains: the Global Supply Chain Continuity Index rose by 7%. This indicates improved expectations of a favorable monetary policy environment worldwide. At the same time, the survey shows that industry-specific regulatory concerns are on the rise, with 32% of companies citing this as one of their main concerns. Nationalism, including export restrictions on key technologies and raw materials, is driving these concerns.

Strong Swiss economy: business climate and willingness to invest outperform global benchmarks

• Global Business Optimism Index: Business optimism among Swiss companies grew by 13% and reached 140 points, placing it well above the global average of 131 points. Large and medium-sized companies in particular are benefiting from this growth.
• Global Business Financial Confidence Index: Financial confidence in the Swiss economy rises significantly by 16% to 140 points in the fourth quarter of 2024 as the ECB cuts interest rates further.
• Global Business Investment Confidence Index: In Switzerland, companies' willingness to invest grew by a further 9% to 140 points. Alongside the United Kingdom (+13%) and Spain (+8%), Switzerland is one of the developed economies with the strongest investment confidence in the fourth quarter.
• Global Supply Chain Continuity Index: The Global Supply Chain Continuity Index increased by 20 percent to 123 points due to lower electricity and energy costs. Nevertheless, one in four companies in Switzerland, the USA and Spain are considering diversifying their supply chains and markets as their preferred strategy for dealing with regulatory risks.
• Global Business ESG Index: The Global Business ESG Index rose by 4 percent, which is an increase of 18 percent compared to the third quarter. 

"Although business optimism has increased globally and inflation has declined, the geopolitical situation is contributing to economic uncertainty," says Arun Singh, Global Chief Economist at Dun & Bradstreet. "Industry-specific regulatory risks and stricter data requirements were cited as the biggest concerns by a third of respondents. To mitigate these risks, companies are considering diversifying their supply chains and markets to manage regulatory risk."

Source: www.dnb.co.uk