SEB's China Financial Index, which measures the business outlook among northern European companies' subsidiaries in
In the spring survey, all individual index components decreased. Optimism regarding profitability and staffing fell the most, by 7.7 and 6.5 index points to 49.6 and 56.1 respectively, as a crunch in supply chains coupled with lockdowns and preventative measures in response to COVID-19 are impacting companies' ability to operate. As growth outlooks have gradually come down, the order intake index continued to fall and the number of respondents expecting negative top-line growth over the next six months increased. This development is not surprising if one considers the strong performance in 2020 and 2021 and that the world economy is becoming more balanced as the world is gradually opening up. Companies' view on investments also worsened slightly, and one of the impacts of the resurgence in COVID-19 cases and measures taken in response to that development is that 37 percent reply that they are delaying or halting investments for now.
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Almost 100 percent of the survey respondents lists supply chain disruptions as one of the main impacts following the measures imposed in several cities and provinces in
As for the key concerns over the next six months, supply chain disruption continues to reign as the biggest one. A total of 71 percent of the respondents stated this as the main concern, while around 20 percent are most concerned about customer demand. Already congested supply chains are being increasingly stretched due to the COVID-19 related lockdowns and this will spill over to global supply chains and add to inflation.
About the survey
SEB's China Financial Index is a unique semi-annual survey, whose purpose is to mirror changes in expectations among northern European (Nordic, German, Austrian, Swiss and
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SEB is a leading northern European financial services group with a strong belief that entrepreneurial minds and innovative companies are key in creating a better world. We take a long-term perspective and support our customers in good times and bad. In
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