Dun & Bradstreet Global Supply Chain Continuity Index Dips in Wake of Geopolitical Conflicts and Climate-Induced Disruptions in Key Shipping Routes
January 16 2024 - 8:45AM
Business Wire
Global Business Optimism Insights report finds
higher optimism for Q1 2024 amid push for growth
Dun & Bradstreet (NYSE:DNB), a leading global provider of
business decisioning data and analytics, today released its Q1 2024
Global Business Optimism Insights report. The quarterly report
shows a downturn in global supply chain continuity due to
geopolitical tensions, trade disputes, and climate-related
disruptions in maritime trade causing both higher delivery costs
and delayed delivery times. The report also indicates that
businesses—having endured multiple challenges such as the pandemic,
conflicts, and monetary tightening—are now adopting a growth
mindset, as reflected in the overall optimism index.
“Global businesses are now maintaining a balance between
optimism and realism and are adopting a more pragmatic stance
towards their future. Leaders have endured frequent economic
disruptions over the past few years and have become more adept at
dealing with them; however, they remain cautious of geopolitical
conflicts and supply chain disruptions,” said Neeraj Sahai,
President, Dun & Bradstreet International. “This shift in
mindset suggests anticipation of additional growth in the
forthcoming quarters, albeit with an underlying sense of continued
caution."
Business leaders are looking at growth opportunities and risks
through multiple lenses, as substantiated by Dun & Bradstreet’s
report. While concern remains over the global supply chain,
businesses appear to have a higher tolerance for potential risk and
greater adaptability, as a result of their experience managing
disruption over the past few years. Key findings from the report’s
five indices reveal:
- The Global Business Optimism Index increased
by 6.6% in Q1 2024 compared with Q4 2023, indicating that
businesses in advanced economies now feel more confident about
their ability to absorb geopolitical and policy shocks, and are
focusing more on growth opportunities.
- The Global Supply Chain Continuity Index fell sharply
by 6.3% for Q1 2024 compared with Q4 2023, with suppliers’
delivery time and delivery cost indices both deteriorating.
Executives also report that climate-induced disruptions and trade
disputes are contributing to decreased optimism. This index
declined equally for both advanced and emerging economies, with
each receding 6% from the last quarter.
- The Global Business Financial Confidence Index increased by
10.1% in Q1 2024 compared with Q4 2023; in addition, liquidity
is expected to increase across firms of all sizes and businesses
are more optimistic about their competitive positioning,
particularly large firms with greater resources employed in
liquidity risk management.
- The Global Business Investment Confidence Index rose
10.7% in Q1 2024 compared with Q4 2023. This reading reflects a
high absolute level of optimism and a growing consensus that major
central banks in advanced economies have reached a peak in the
current interest rate hike cycle.
- The Global Business Environmental, Social and Governance
(ESG) Index increased 7% in Q4 2023 to 61.9, in contrast to a 4.7%
decline in Q3 2023, reflecting a positive shift in the
commitment of firms worldwide towards sustainability practices. The
favorable sentiment towards ESG practices reflects an elevated
awareness of sustainability, underscored by the recent agreement
among nations at the COP28 conference.
*Descriptions and information about the indices can be found on
page 25 of the report.
"Despite the acknowledgement of economic and political headwinds
across the globe, it’s important to note that business leaders are
expected to begin 2024 with a relatively positive economic
outlook,” said Arun Singh, Global Chief Economist, Dun &
Bradstreet. “However, confidence in the resilience of supply chains
is facing pressure due to continued geopolitical tensions and
climate events. These factors have compelled companies to reroute
supply chains, which has led to congestion along transit routes.
Business leaders are experiencing both higher delivery costs and
delayed delivery times—a reminder of pandemic-related
challenges.”
About the Global Business Optimism Insights Report
The Global Business Insights Optimism report is an amalgamation
of five indices computed for 32 economies including the Global
Business Optimism Index, Global Business Supply Chain Continuity
Index, Global Business Financial Confidence Index, Global Business
Investment Confidence Index and Global Business ESG Index. These
five indices were created by synthesizing findings from a survey of
approximately 10,000 businesses in the last quarter alongside
insights from Dun & Bradstreet, leveraging the firm’s
proprietary data and economic expertise. These indices 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.
View the full report and corresponding records here.
About Dun & Bradstreet
Dun & Bradstreet, a leading global provider of business
decisioning data and analytics, enables companies around the world
to improve their business performance. Dun & Bradstreet’s Data
Cloud fuels solutions and delivers insights that empower customers
to accelerate revenue, lower cost, mitigate risk, and transform
their businesses. Since 1841, companies of every size have relied
on Dun & Bradstreet to help them manage risk and reveal
opportunity. For more information on Dun & Bradstreet, please
visit www.dnb.com.
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Media: Dawn McAbee 904-648-6328 Mcabeed@dnb.com
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