Moore Global has published the latest edition of its Thrive Index, revealing that geopolitical tensions, armed conflicts, rising energy costs and economic uncertainty are putting increasing pressure on mid-market businesses worldwide.
While overall business performance remained resilient over the past 12 months, companies are becoming more cautious about the year ahead. The overall Thrive Index remained unchanged at +35.1, but business leaders expect slower revenue growth, continued cost pressures and a more challenging environment for hiring and investment.
The highest overall Thrive Index scores were recorded by South Africa, Saudi Arabia, the UAE, India, the US, China, Australia and Brazil. Meanwhile, most European countries, along with Japan and Canada, scored below the global average, reflecting the continuing shift in global economic momentum towards faster-growing markets.
The research measures business confidence across five key areas:
- General Business Sentiment (Thrive Index score +68.8 v +66.3 last year (+0.5)) remained positive, although confidence in future growth has weakened due to geopolitical uncertainty, inflation and higher financing costs.
- Revenue (Thrive Index score +58.4 v +59.1 last year (-0.7)) expectations have softened despite solid performance over the past year, with many companies anticipating slower sales growth.
- Business Costs (Thrive Index score -49.5 current v -49.8 last year (+0.3)) continue to be the biggest challenge, driven by higher raw material, labour and energy costs.
- Labour Market (Thrive Index score +41.6 v +42.3 last year (-0.7)) conditions are expected to remain difficult, with businesses becoming more cautious about recruitment while facing ongoing challenges in retaining skilled employees.
- Investment Activity (Thrive Index score +58.3 v +57.6 last year (+0.7)) remains positive, although businesses are expected to invest more selectively. Digital transformation, artificial intelligence and cybersecurity continue to be key investment priorities.
The report highlights that companies investing in technology and innovation remain the most optimistic about future growth despite the increasingly uncertain global environment.
Read the original article on the Moore Global website:
https://www.moore-global.com/intelligence/a-year-of-chaos-takes-its-toll-on-mid-market-businesses/
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