U.S. companies will spend 6.4% more on raw or processed materials in the second quarter. According to American Express’s first survey of global business-to-business (B2B) spending, there was a decrease versus the first quarter.
The Center for Business and Economic Research conducted the survey in six countries. It highlighted the continued rise in demand and prices for bulk commodities, affecting almost every industry at home and abroad. From the fourth quarter of 2020 to the first quarter of 2021, B2B spending on basic materials such as chemicals, metals, and wood increased by 7.5%. Hence, according to the survey, expenditures in the first quarter increased by 6.2% over the same period in 2020. Furthermore, from the nine expenditure sub-categories tracked by the study, these are the largest increases to date.
American Express surveyed more than 1,000 American financial executives. The survey is expected to be conducted quarterly and covers companies’ domestic and international expenditures in all six countries.
About three-quarters of U.S. companies are optimistic about B2B spending activities in the next 12 months. It is the highest optimism rate among the six countries surveyed.
The Survey Found that U.S. Companies Are Leading the Way in B2B Payment Automation
Compared with the same period in 2020, U.S. companies expect B2B spending in the second quarter to increase by 3.4%
B2B activities are almost flat during 2020, as many businesses closed during the peak of the COVID-19 pandemic. The survey results show that 3,600 companies expect their B2B spending in the second quarter to increase by 3.1% over the first quarter.
With the fantastic surge in online purchases after the pandemic, the business-to-consumer arena has taken much attention.
However, without the contribution of the B2B field, it isn’t easy to imagine that the U.S. economy will regain the momentum for sustainable development.
According to data from the Center for Business and Economic Research, B2B transactions account for 48 cents of every dollar spent on the U.S. economy.
In the past year, U.S. companies restructured their supply chains, and the massive impact of COVID-19 is noticeable. Approximately 23% of respondents stated that they “simplified” the supplier network. They also said that they took steps to reduce or avoid long-term procurement commitments with suppliers.
About 22% said they chose a supplier that offers more flexible payments.