GlobalData Report Shows Dwindling Business Sentiment, Escalating Macroeconomic Risks in 2022

The year 2022 brought about a significant shift in the sentiment of businesses as they navigated through a challenging economic landscape. There is a noticeable increase in the share of macroeconomic-related risk mentions and a dip in the overall sentiment during the year, which is in sync with the trends observed in the OECD Business Confidence Index, finds GlobalData.

GlobalData’s “Company Filings Analytics – Trends & Signals Annual Report 2022” report reveals that discussions around Inflation, Slowdown, Recession, Shortages, and Supply Chain were trending in 2022. Ukraine was among the key countries discussed during the year.

Discussions around Ukraine trended due to the Russia-Ukraine conflict and companies discussed implications on prices and supply chain. The mentions of Russia, Israel, the United States and Brazil also increased. Singapore and India emerged as countries with positive sentiment.

Aerospace, Defense & Security (ADS), and Insurance industry sentiment was positive while the sentiment for Construction and Mining sectors remained flat. Insurance industry sentiment improved with companies looking to enhance customer experiences. Trending key risks with the increased share of risk mentions for the insurance industry include Planning, Budgeting & Accounting Errors/Marketing Failures, Market, Regulatory & Compliance, Supply Chain risk.

Misa Singh, Business Fundamentals Analyst at GlobalData, comments: “Company filings sentiment marginally declined in 2022 compared to the previous year. Industrials and Financials bucked the trend with an uptick. Mega-cap companies with increased sentiment include L’oreal, Novo Nordisk, and LVMH by 27%, 12%, and 7%, respectively.”

Amongst the themes, Carbon Capture Storage, Metaverse, and Cryptocurrencies were trending with high growth in mentions. The mentions of Blockchain and Batteries also increased during the year. Cybersecurity had the most positive sentiment.

Singh concludes: “As businesses navigate through a rapidly evolving economic landscape, it is encouraging to see that company discussions in 2022 centered around initiatives related to investments, growth, and product strategies, which demonstrate a forward-thinking approach towards staying ahead of the curve.”