See the Power of the Coupa Business Spend Index
BSI Q2 2021: All Industries
Vs Last Quarter (BSI Q1 2021: 4.3%)
Vs Last Year (BSI Q1 2020: -15%)
Forecast Range: Upside Likely
Coupa’s Business Spend Index (BSI) is a predictive measure of business confidence powered by billions of dollars of spend data broken into three factors—Search, Order, and Pay—that are used to provides insight into industry and economic trends.
This quarter, the rate of improvement within the BSI indicates that business confidence is accelerating with growing momentum for a return to “normal”. That said, there will be significant regional and industry differences in the rate of recovery.Download PDF
BSI Q2 2021: Business Services
Vs Last Quarter (BSI Q1 2021: 2.3%)
Vs Last Year (BSI Q1 2020: -15.3%)
BSI Q2 2021: Financial Services
Vs Last Quarter (BSI Q1 2021: -0.1%)
Vs Last Year (BSI Q1 2020: -22.9%)
BSI Q2 2021: Health & Life Sciences
Vs Last Quarter (BSI Q1 2021: -2.1%)
Vs Last Year (BSI Q1 2020: -10.2%)
BSI Q2 2021: High Tech
Vs Last Quarter (BSI Q1 2021: -0.3%)
Vs Last Year (BSI Q1 2020: -18.5%)
BSI Q2 2021: Manufacturing
Vs Last Quarter (BSI Q1 2021: -1.0%)
Vs Last Year (BSI Q1 2020: -7.1%)
BSI Q1 2021: Other Services
Vs Last Quarter (BSI Q1 2021: 4.6%)
Vs Last Year (BSI Q1 2020: -21.4%)
BSI Q1 2021: Retail
Vs Last Quarter (BSI Q1 2021: -4.8%)
Vs Last Year (BSI Q1 2020: -4.9%)
“It’s encouraging to see signs of business confidence rebounding after the precipitous drop at the start of the pandemic. We expect the economy to improve modestly in the near term, accelerating throughout Q2 2021 as COVID infection rates decline and vaccinations increase.”
Jeff Collins, Ph.D., Chief Economist, CoupaRead Blog
What is the Coupa Business Spend Index?
The Coupa Business Spend Index (BSI) is a predictive measure of business confidence that delivers community driven insights enabling companies to take action and make informed spend decisions which lead to realized, measurable business value.
The power of the Coupa BSI derives from the billions of dollars in spend flowing annually through our platform. Coupa is and always has been a pure cloud solution for Business Spend Management, and because of that, we are uniquely able to leverage over $2T of aggregated and anonymized business spend data. Using this data, we derived a number of spend factors which are grouped into three categories Search, Order, and Pay. This data provides an unparalleled look into past spend as well as current intended spend of companies around the globe, which in turn provides insight to the larger industry and economic trends.
The Coupa BSI provides business decision makers with critical information to plan for changes in their business's spend. By leveraging Coupa’s Community, business decision makers can benefit from the information, support, and credibility needed to drive even improved results - since none of us is as smart as all of us.
What are the spend factors within the BSI?
This set of inputs measure early stage activity in the Business Spend Management process. Search includes, for example, a measure of Sourcing activity which is indicative of improving or declining confidence in future economic opportunities.
A set of inputs that measure Purchase Order creation, which represent the commitment to spend. Order includes both spend and transactional volumes and is positively related to increased confidence in the economy.
A set of inputs that measures Invoice and Expense volume. Pay comprises transaction volumes related to spend which has been incurred. This includes business travel spend which is highly sensitive to changes in business confidence.
The Coupa Business Spend Index (BSI) is a predictive measure of business confidence that delivers community-driven insights enabling companies to take action and make informed spend decisions which lead to realized, measurable business value. It provides community-driven insights on how companies are searching, ordering, and paying across their organizations.
For a Chief Financial Officer (CFO) or other business decision maker, the BSI shows what the latest information is on the growth of the economy in terms of real data versus speculation. It drills down into what’s happening within specific industries, which in turn provides leaders with the necessary information to validate what they are seeing and their responses.
The BSI leverages Coupa’s unique access to over $2T of aggregated and anonymized business spend data that runs through the platform. This data is based on the spend data of thousands of Coupa customers from January 2016 to the present. This model is based upon 13 spend factors tracked within the platform. We have bundled those 13 factors into three groups–Search, Order, and Pay.
We are very confident in our ability to provide an accurate and insightful forecast of future economic activity. This is due to the wide range of customers and the amount of spend flowing through the Coupa platform, which provides a large and representative data set used to inform the BSI. On top of that rich data, we have built a model based on substantial academic research.
The Coupa BSI is normalized to a baseline value of 100, which represents the state of business spend in the baseline reference period (January 2018) computed using the dynamic factor model with the three grouped spend factors.