The Coupa Business Spend Index:

A predictive measure of business confidence leveraging business spend data from the Coupa Community to deliver business value and insights at the macro and industry level.

Explore the Data What is the Coupa BSI? FAQs

BSI

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BSI Q3 2021: All Industries

95.9

Increasing

Vs Last Quarter (BSI Q2 2021: 2.7%)

Vs Last Year (BSI Q3 2020: 17.2%)

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 provide insight into industry and economic trends.

This quarter, the rate of improvement within the BSI indicates continued improvement in Q3 2021, increasing nearly 3 percent from last quarter, representing continued confidence in the economic outlook.

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By Industry

BSI Q3 2021: Business Services

85.8

Decreasing

Vs Last Quarter (BSI Q2 2021: -3.3%)

Vs Last Year (BSI Q3 2020: 1.7%)

BSI Q3 2021: Financial Services

98.5

Unchanged

Vs Last Quarter (BSI Q2 2021: 0.2%)

Vs Last Year (BSI Q3 2020: 0.5%)

BSI Q3 2021: Health & Life Sciences

97.8

Increasing

Vs Last Quarter (BSI Q2 2021: 0.5%)

Vs Last Year (BSI Q3 2020: -0.3%)

BSI Q3 2021: High Tech

90.8

Unchanged

Vs Last Quarter (BSI Q2 2021: 0.1%)

Vs Last Year (BSI Q3 2020: -1.1%)

BSI Q3 2021: Manufacturing

100.8

Increasing

Vs Last Quarter (BSI Q2 2021: 5.3%)

Vs Last Year (BSI Q3 2020: 12.9%)

BSI Q3 2021: Other Services

73.3

Increasing

Vs Last Quarter (BSI Q2 2021: 2.8%)

Vs Last Year (BSI Q3 2020: 11.2%)

BSI Q3 2021: Retail

104.6

Increasing

Vs Last Quarter (BSI Q2 2021: 3.4%)

Vs Last Year (BSI Q3 2020: 2.8%)

“Despite persistent supply chain disruptions, spiking COVID cases, and delayed return to work plans, spend per customer is up 20 percent year-over-year indicating business confidence is returning to pre-pandemic levels. The increases within Manufacturing and Retail are indicative of continued upward demand from consumers and businesses as the economy returns to normal.”


Jeff Collins, Ph.D., Chief Economist, Coupa

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 that 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 into 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?

Search
This set of inputs measure early-stage activity in the Business Spend Management process. Search includes, for example, a measure of Sourcing activity that is indicative of improving or declining confidence in future economic opportunities.

Order
A set of inputs that measure Purchase Order creation, which represents the commitment to spend. Order includes both spend and transactional volumes and is positively related to increased confidence in the economy.

Pay
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.

FAQs

What is the 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 that lead to realized, measurable business value. It provides community-driven insights on how companies are searching, ordering, and paying across their organizations.

How can I use this data to make better decisions for my business?

Our unique visibility into the end-to-end process of business spend allows us to provide immense value for business leaders. With the BSI, CFO's, and business decision makers can get a forward view of the direction and velocity of the U.S. economy at the macro and industry level to make strategic decisions that deliver value back into their business strategy.

Where does the data in the BSI come from?

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 that lead to realized, measurable business value. It provides community-driven insights on how companies are searching, ordering, and paying across their organizations.

What is the accuracy of the forecast?

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.

What is the baseline for the BSI?

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.