📊 Global Business Climate Subdued as Geopolitical & Cost Pressures Rise

Global business sentiment remains largely unchanged and subdued, with the Global Consumer Goods Industry Index edgeing up slightly to 100.4 in mid-2026 (from 100.1). Shift in challenges highlights mounting pressure on global supply chains—critical for trade-reliant economies like Sri Lanka. • Global Sentiment & Regional Breakdown: - Asia: Stronger sentiment, scoring +4.2 points above the global index. - America: +2.3 points above average. - Europe: Remains lagging, -1.2 points below average. - Sector-wise, manufacturing shows slightly higher confidence than trade and services. • Key Business Challenges: - Geopolitical Risk & Uncertainty: 84% of manufacturers (up from 52%) and 63% of trade/services (up from 46%) identify wars and conflict as major threats. - Cost Pressures: 66% of manufacturers report rising production costs (up from 51%), alongside escalating procurement expenses. - Trade Barriers: High exposure to tariffs affects 74% of businesses in America, 66% in Asia (up from 58%), and 42% in Europe (up from 33%). • Technology & AI Adoption: - AI Usage: Heavily concentrated in content creation and media applications. - Adoption Barriers: Growth is limited by lack of internal expertise, integration challenges with legacy systems, budget constraints, and data security risks. • Outlook: Moderate overall, showing early signs of turnover recovery in manufacturing, though broader economic growth remains cautious amid ongoing volatility.