Businesses face increased risks amid geopolitical tensions and economic challenges, impacting investment outlook
JACKSONVILLE, Fla., April 09, 2025–(BUSINESS WIRE)–Dun & Bradstreet (NYSE:DNB), a leading global provider of business data and analytics, today released its quarterly 2025 Global Business Optimism Insights report, revealing a 1.3% quarter-over-quarter decline in business optimism, following a sharp 12.9% drop seen in the prior quarter. Persistent global economic uncertainty and rising trade protectionism continue to dampen global business sentiment.
While financial confidence dropped 8.6% amid challenging business conditions, optimism levels for supply chain continuity were flat. Further, investment optimism declined reflecting continued uncertainty over the pace of rate cuts in 2025.
“In the face of macroeconomic uncertainty, rising capital costs, and a weakening growth forecast, businesses remain apprehensive about the global economic landscape and cautious about investment,” said Neeraj Sahai, President of Dun & Bradstreet International. “The reshaping of trade relationships and tariff uncertainty contributed to over 90% of the economies surveyed reporting a decline in their financial confidence index, in both emerging and advanced economies. Cost expectations remain elevated, especially in the economies most exposed to tariff hikes.”
Export-driven sectors such as automotives, electricals, and metals saw sharp declines in business optimism, particularly in the U.S., Mexico, South Korea, and Japan, where rising tariffs and shifting trade policies have resulted in cost pressures and demand volatility. Financial risk perceptions remain elevated as businesses continue to deal with high borrowing costs amid tightening liquidity conditions and persistent inflation expectations. Globally, the perception of financial risk on business balance sheets has increased, with optimism levels falling 6% quarter-over-quarter.
Key findings from the Q2 2025 report:
-
The Global Business Optimism Index further declined 1.3%, following a sharp 12.9% decline in the prior quarter. Sentiment across emerging economies held steady, with the decline driven by advanced economies where optimism fell 1.7%. However, a resurgence of inflation is viewed as being disruptive, with 86% reporting it would significantly affect operations.
-
The Global Supply Chain Continuity Index remained flat following a sharp decline of 10.7% last quarter. The overall stagnant optimism is attributable to the persistent supply chain disruptions, labor shortages, the ongoing challenges of adjusting to evolving global trade dynamics, and heightened tensions surrounding U.S. tariffs.
-
Globally, there is a noticeable drop in optimism about delivery lead time, which declined 7.8% quarter-over-quarter with the fall slightly larger at 9.5% for advanced economies.
-
