Global business optimism rises by 7%

Dun & Bradstreet’s Global Business Optimism Insights report has found a 7% increase in business optimism quarter-over-quarter, driven by gradual easing of inflation rates and favourable borrowing conditions.

Nearly four in five businesses are expressing increased optimism in domestic and export orders, capital expenditures and financial risk due to a combination of easing financial pressures, shifts in monetary policies, robust regulatory frameworks and higher participation in sustainability initiatives.

US businesses recorded a nearly 9% rise in optimism, aided by falling inflation and expectations of further rate cuts. Similarly, business optimism in the UK and Spain showed notable recoveries as their respective central banks initiated monetary easing, rising by 13% and 9%, respectively. Emerging economies, such as Argentina and India, saw jumps in optimism levels due to declining inflation and increased domestic demand respectively.

Neeraj Sahai, President of Dun & Bradstreet International said “While overall global business optimism has increased and inflation has abated, it’s important to recognise that geopolitics contribute to economic uncertainty.

“Industry-specific regulatory risks and more stringent data requirements have emerged as the top concerns among a third of respondents. To mitigate these risks, businesses are considering diversifying their supply chains and markets to manage regulatory risk.”

Arun Singh, Global Chief Economist at Dun & Bradstreet said “Businesses are increasingly confident as borrowing costs decline, boosting optimism for higher sales, stronger exports, and reduced financial risks.

“This confidence is driving capital investments, with easing supply chain pressures supporting growth in the year’s final quarter.”