The Coupa Business Spend Index

An early indicator of economic growth based on analyzing business spend decisions from hundreds of companies.

The Coupa Business Spend Index

An early indicator of economic growth based on analyzing business spend decisions from hundreds of companies.

View the Q4 2020 Outlook with interpretation of the latest trends from the Coupa BSI.

View Q4 2020 Outlook

Trends in the Coupa Business Spend Index

The Coupa Business Spend Index (BSI) analyzes billions of dollars of aggregated and anonymized spend data in the Coupa Business Spend Management (BSM) Platform, which has cumulatively processed nearly $2 trillion of business spending. It shows trends in business spend sentiment, which are an early indicator of economic growth over the next three-to-six months.


BSI Outlook Date Range

Quarter-over-Quarter Change in the Coupa BSI

At an aggregate and industry level, this chart illustrates the change in business spend sentiment quarter-over-quarter (Q3 '20 vs. Q4 '20).

Hover over chart to see details.

Year-over-Year Change in the Coupa BSI

At an aggregate and industry level, this chart illustrates the change in business spend sentiment year-over-year (Q4 '20 vs. Q4 '19).

Hover over chart to see details.

Deconstructing the Coupa BSI

The Coupa BSI reflects current business spend sentiment made up of three key spend factors at a business: average spend per person, average time to approve spend decisions, and average rate of spend approval/rejection.

Detailed Quarter-over-Quarter Change in Three Key Spend Factors

The table below shows quarter-over quarter changes (Q3 '20 vs. Q4 '20) in the three spend factors and the Coupa BSI, reflecting their relationship. Green indicates improved business spend sentiment. Red indicates worsened business spend sentiment.

  Change in Avg Spend Per Person Change in Avg Time to Approve Spend Decisions Change In Average Rate of Spend Approval / Rejection Change in The Coupa BSI
All Industries -13.5% -14.5% 0.1% 6.1%
Financial Services -19.3% -14.6% 0.5% 6.3%
Health and Life Sciences -23.4% -15.4% -0.1% 32.3%
High Tech -4.7% -17.5% 0.6% 10.4%
Manufacturing -12.7% -4.0% 0.3% -15.8%
Retail -7.7% -1.5% 0.0% 5.1%
Other -16.4% -21.4% -0.1% -15.9%

Detailed Year-over-Year Change in Three Key Spend Factors

The table below shows year-over year changes (Q4 '20 vs. Q4 '19) in the three spend factors and the Coupa BSI, reflecting their relationship. Green indicates improved business spend sentiment. Red indicates worsened business spend sentiment.

  Change in Avg Spend Per Person Change in Avg Time to Approve Spend Decisions Change In Average Rate of Spend Approval / Rejection Change in The Coupa BSI
All Industries 2.9% -34.5% 0.3% -8.2%
Financial Services -13.7% -37.1% -0.1% -12.2%
Health and Life Sciences 35.6% 13.8% -0.4% -5.0%
High Tech 32.6% -20.5% 0.7% 7.4%
Manufacturing -5.9% -24.8% 0.1% -18.3%
Retail -1.7% -23.7% 0.0% -13.9%
Other 2.7% -27.8% -0.1% -18.6%

The Coupa BSI Methodology

The Coupa BSI is an early indicator of potential economic growth based on current business spending decisions of hundreds of U.S. companies. It analyzes billions of dollars of anonymized transactions from the Coupa BSM Platform, which has cumulatively processed nearly $2 trillion in business spend, to measure confidence around U.S. economic growth at an aggregate level, as well as an industry level within financial services, health and life sciences, high tech, manufacturing, and retail. The index is based on three key measurements related to business spend: (1) spend volume, (2) average time to approve spend decisions, and (3) average rate of spend approval/rejection.

The Coupa BSI is normalized to a baseline value of 100, which represents the weighted composite value of the three components in the baseline reference period (July 2016). The weighting methodology is periodically updated based on recalibration of the model. This was most recently done for Q4 2020.

About Coupa Community Intelligence

Coupa Community Intelligence is an AI-powered engine that objectively analyzes transactional spend data flowing through the Coupa BSM Platform and prescribes instant insights that help companies spend smarter, simpler, and safer. Built in the cloud, Coupa uniquely has access to transactional business data, which enables its Community Intelligence engine to leverage the latest in machine learning and AI to provide more accurate benchmarks and high-value insights.