As COVID-19 restrictions loosen, the new Global Business Spend Indicator by American Express shows that Canadian businesses are spending more
- While still down from Q1 2020, business travel, entertainment and expense spending increased 8.3% between Q4 2020 and Q1 2021.
- 72% of Canadian businesses feel positive about their prospects over the next 12 months.
- More than a third (36%) of Canadian businesses identified remaining competitive as one of their top three goals for the next 12 months.
American Express today launched the Global Business Spend Indicator (GBSI), a new survey of global businesses conducted with the Centre for Economics and Business Research (CEBR). The survey has revealed signs of renewed confidence in the 2021 economic outlook as business-to-business spending levels have started to rise.
While businesses have been forced to adapt to lockdown restrictions and supply chain disruptions, Q1 2021 was a turning point for B2B spending. While still down from Q1 2020, business travel, entertainment and expense spending increased 8.3% between Q4 2020 and Q1 2021. However, according to the Global Business Spend Indicator (GBSI) survey, Canadian businesses predict their Q2 2021 B2B spend will be an average of 0.1% higher compared to the same time last year – signalling only a small recovery in B2B spending that equates to an estimated additional USD $0.30bn in Canada.
“Canadian businesses have plans to grow in 2021, and that is going to boost the health of the Canadian and global economies,” said Paul Roman, Vice President & General Manager, Global Commercial Payments at American Express. “While it is important to recognize that the operating landscape has changed dramatically, overall spending levels suggest that recovery is evident for businesses.”