Business-to-business spending globally is set to increase in the next 12 month, a survey of more than 3,600 companies across Australia, Canada, Japan, Mexico, the UK and the United States, has found.
The findings released today are from the American Express inaugural Global Business Spend Indicator.
In the report, business-to-business spending is classified as goods and services that a business purchases from another business to keep their business running.
The survey was done by Opinium research between March 18 and April 12, 2021. The sample is made up of senior decision makers with responsibility over at least three categories of expenditure, American Express explained. Nine B2B spending categories, and three additional categories of taxes, people/workforce, and travel, entertainment and expenses, are surveyed.
The survey found 70 percent of companies are optimistic for the next 12 months.
Overall, companies have been increasing business spending since the beginning of the year and anticipate further increases in 2021, the survey shows.
Despite the challenges of the global coronavirus pandemic, overall optimism and rising B2B spending should give Hong Kong companies the confidence that the recovery is well under way, said Tony Tsai, vice president and general manager, Global Commercial Services, Hong Kong and Taiwan, Foreign Currency Solutions, Asia Pacific at American Express.
The Global Business Spend Indicator by the consultancy, the Centre for Business and Economic Research, is designed to explore the importance of business spending in global and local economies, American Express said.
The Global Business Spend Indicator found that technology spending grew strongly – 37 percent of businesses across the six countries surveyed increased technology expenditures over the past year. On average, businesses increased investment in technologies such as automation and e-commerce by more than 10 percent between the fourth quarter of 2020 and second quarter of 2021. These showed that businesses are eager to facilitate and improve remote working and online commerce as new ways of operating.
There was also strong growth in online advertising spending, which was more than twice as fast compared with the spend on print advertising quarter-on-quarter. Bsinesses plan to spend an average of 2.6 percent more on advertising, sales and marketing in the second quarter of 2021 compared with the year before quarter, reflecting businesses’ prioritizing securing new businesses, American Express said.
Businesses are no longer in survival mode and are more focused on growth an they pointed to increasing profitability, securing new business, and staying competitive, as their top three business imperatives this year. These have been reflected in how they plan to spend, American Express said.
“Businesses in Hong Kong, like the global businesses surveyed, have set their eyes on driving growth and are in need of better cash flow as they emerge from the pandemic. It is crucial for them to secure alternative source of funds and greater credit flexibility during this critical time, which will enable them to strengthen resilience and take advantage of growth opportunities ahead,” Tsai, said.
