02.05.22 – Economy
Business sentiment remained flat in Q1 2022
Business sentiment plateaued in Q1 2022 compared to the previous quarter, while gaining 6% compared to Q1 2021.
The data and analytics company GlobalData notes that increased discussions on themes such as deal making and environmental, social and governance (ESG) indicate focus areas for firms in 2022.
GlobalData’s latest report, ‘Company Filings Analytics Trends & Signals Q1 2022’, reveals that the technology sector had the highest sentiment, followed by consumer industries, industrials, healthcare, and financials. The top keywords included ‘inflation’, ‘pricing’, ‘shortages’, and ‘supply chain’.
Rinaldo Pereira, Business Fundamentals Analyst at GlobalData, comments: “Business sentiment across all the regions remained flat, with only Europe and Middle East and Africa (MENA) experiencing growth. Inflation, supply, and shortage issues persist, and companies are working on mitigating impacts of cost via pricing or alternate avenues. For supply, firms are looking at alternate suppliers or a shift in location. It is interesting to note that some companies are also discussing employee absenteeism, which is adding to the labor shortage impact.”
On the geography front, Russia and Ukraine emerged as the two trending countries in earnings call transcripts amid the recent geopolitical tensions. ‘Geopolitics’ was trending across multiple sectors as firms discussed the Russia-Ukraine conflict. Sanctions around Russia were also frequently discussed on earnings calls, with technology and oil and gas companies discussing the conflict the most out of all the industries.
Pereira adds: “‘Commodity prices’, ‘deal making’ and ‘ESG’ saw a jump in mentions. Regarding ESG, companies are focused on meeting Sustainable Development Goals (SDGs) and hiring more diverse candidates. Furthermore, there is a rising emphasis on SDG 16 – which focuses on peace, justice and strong institutions – amid the geopolitical tensions.”