As governments and organizations continue to work toward containing COVID-19 and stem the growing humanitarian toll it is exacting, the economic effects are also beginning to be felt. We are tracking B2B decision maker sentiment to gauge how people’s expectations, incomes, spending, and behaviors are changing throughout the crisis across multiple countries over time. Please check back regularly for updates.

1. McKinsey & Company 1
Optimism is relatively high and growing: Two-thirds are optimistic
about the economy, up 12 percentage points from two weeks ago
Confidence level on economic conditions after the COVID-19 situation1
% of respondents
5 2
39
29
56
68
April 6 April 27
Optimistic: The economy will rebound in 2–3 months and grow
just as strong as or stronger than before COVID-19
Pessimistic: COVID-19 will have lasting impact on the economy and will
show regression/fall into lengthy recession
Neutral: The economy will be impacted for 6–12 months or
longer and will stagnate or show slow growth thereafter
1Q: How is your overall confidence level on economic conditions after the COVID-19 situation? Figures may not sum to 100% because of rounding; a “prefer not to answer” option was given, but <1% of respondents filled it out in 2020.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/6–4/6/2020 (n = 400); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 443)

2. McKinsey & Company 2
China is more optimistic compared to other regions, behind only
India
12 11 9 12
18
12 10
41
13 12 10
43 47 47
50
49
50
29
19
48
58
51
41
45 42 43
37
33
39
68 71
10
30
37
50
ItalyFrance UKSpainAll
countries
Germany
2
China India Japan S. Korea Brazil US
Confidence level on economic conditions after the COVID-19 situation1
% of respondents
Optimistic: The economy will
rebound in 2–3 months and grow
just as strong as or stronger
than before COVID-19
Pessimistic: COVID-19 will have
lasting impact on the economy and
will show regression/fall into
lengthy recession
Neutral: The economy will be
impacted for 6–12 months or
longer and will stagnate or
show slow growth thereafter
1Q: How is your overall confidence level on economic conditions after the COVID-19 situation? Figures may not sum to 100% because of rounding; a “prefer not to answer” option was given, but <1% of respondents filled it out in 2020.
Percentage-
point change
in optimism
between April
1–9 surveys
and April 20–
28 surveys
Europe APAC
1% -9% 4% 7% 0% 0% 12% 3% 2% 8% -10% -5%
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/20–4/28/2020, (US n = 607), (France n = 219), (Spain n = 215), (Italy n = 407), (UK n = 218), (Germany n = 414), (China n = 443),
(South Korea n = 200), (Japan n = 202), (India n = 411), (Brazil n = 419)

3. McKinsey & Company 3
China is decelerating its budget reductions more than APAC on
average; near-term spend reductions are also decelerating
46 41
33 34
21 25
April 6 April 27
Company’s budget (changes already made)2 Expected in the next two weeks3
China
APAC4
51 51
27 25
22 24
April 9 April 28
Spend shifts as a result of COVID-19
% of spend changes
31 23
41
41
28 37
April 6 April 27
43 40
31 29
26 31
April 9 April 28
1“About the same” refers to ±3% change in budget.
2Q: How has the coronavirus (COVID-19) situation affected your company’s budget for the following areas? Percentages may not add to 100 because of rounding.
3Q: How do you think spending on the following may change in the next two weeks? Percentages may not add to 100 because of rounding.
4Includes survey respondents from (China n = 443), (South Korea n = 200), (Japan n = 202), (India n = 411).
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/6–4/6/2020 (n = 400); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 443)
IncreasedAbout the same1Reduced

4. McKinsey & Company 4
Respondents report downward budget shifts across all categories,
with banking and insurance least affected to date
53
32
28
42
36
42
42
47
41
50
33
36
38
31
35
43
29
39
41
31
29
34
29
43
33
34
15
33
30
29
25
17
27
24
25
21
24
30
28
Processing supplies
Distribution and transportation
Software and telecom
Packaging
Banking and insurance
Energy
Specialty inputs
Commodity inputs
Finished goods
Vehicles
Capital equipment
IT hardware
Real estate
Reduced About the same3 Increased
Budget changes due to COVID-19 (changes already made)1
% of respondents
Net
intent2
Services
Inputs
Capex
-38%
1%
2%
-13%
-11%
-25%
-16%
-23%
-16%
-29%
-9%
-6%
-11%
1Q: How has the coronavirus (COVID-19) situation affected your company’s budget for the following areas? Figures may not sum to 100% because of rounding.
2Net intent is calculated by subtracting the % of respondents stating they expect to decrease spending from the % of respondents stating they expect to increase spending.
3“About the same” refers to ±3% change in budget.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 443)

5. McKinsey & Company 5
The pharma and medical products industry is experiencing the
most significant budget decline
Budget net intent1 per category for each industry2
Overall industry net intent
% where budget is about the same3
Advanced
industries
Technology,
media, and
telecom
Global energy
and materials
Pharma and
medical
products
Travel,
transportation,
and logistics
Global finance,
banking, and
insurance Consumer/Retail
Services
Inputs
Capex
Specialty inputs
Energy
Processing supplies
Packaging
Commodity inputs
Finished goods
Software and telecom
Banking and insurance
Distribution and transportation
Capital equipment
IT hardware
Vehicles
Real estate
39 30 39 29 26 21 21
N/A4
Net intent: % of budget decreases subtracted from the % of budget increases
Below -50 -50 to -25 -25 to 0 0 to 25 25 to 50 50+
1Budget net intent is described as the % of budget decreases subtracted from the % of budget increases.
2Q: How has the coronavirus (COVID-19) situation affected your company’s budget for the following areas?
3“About the same” budget changes are those that are +/- 3%.
4Sample was insufficient.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 443)
N/A4
N/A4

6. McKinsey & Company 6
In the next two weeks, spending will likely increase across a
majority of categories across industries
Net intent: % of budget decreases subtracted from the % of budget increases
Below -50 -50 to -25 -25 to 0 0 to 25 25 to 50 50+
Next two-week spending net intent1 per category for each industry2
Overall industry net intent
% where budget is about the same3
Advanced
industries
Technology,
media, and
telecom
Global energy
and materials
Pharma and
medical
products
Travel,
transportation,
and logistics
Global finance,
banking, and
insurance Consumer/Retail
Services
Inputs
Capex
Specialty inputs
Energy
Processing supplies
Packaging
Commodity inputs
Finished goods
Software and telecom
Banking and insurance
Distribution and transportation
Capital equipment
IT hardware
Vehicles
Real estate
42 41 44 36 32 29 41
1Net intent is described as the % of spending decreases subtracted from the % of spending increases.
2Q: How do you think spending on the following may change in the next two weeks?
3“About the same” spending changes are those that are +/- 3%.
4Sample was insufficient.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 443)
N/A4
N/A4
N/A4

7. McKinsey & Company 7
Global energy
and materials
Advanced
industries
Pharma and
medical products
Technology,
media, telecom
Travel,
transportation,
and logistics
Global finance,
banking, and insurance
Consumer/retail
All industries are shifting capacity down in light of tempered
demand; advanced industries and travel seeing sharpest declines
Flat
-10%
Demand
for
products/
services
Operational capacity (eg, production)3 Flat-10%
Impact of COVID-19 on demand and capacity1,2
% change due to COVID-193
1Q: How has the coronavirus (COVID-19) situation affected your company’s production (operation) capacity? Percentages may not add to 100 because of rounding.
2Q: How has the coronavirus (COVID-19) situation affected demand for your company’s products/services? Percentages may not add to 100 because of rounding.
3Weighted average uses following midpoints: “increased/reduced 25+%” is +/- 30%, “increased/reduced 11–25%” is +/- 18%, “increased/reduced 4–10%” is +/- 7%, “About the same (+/- 3%)” is 0%.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 443)

8. McKinsey & Company 8
Companies are reducing marketing spend in all regions; more than
60 percent of China B2B companies have reduced their marketing
62 63 58 56
68 71
62
69 65 71
58 57
18 19
21 23
18 14
19 8
26 20
16 20
20 18 21 21
14 15 19 24
8 10
26 23
SpainAll
countries
Germany ChinaFrance USItaly UK India S. KoreaJapan Brazil
Europe APAC
Marketing spend change1
% of responses
1Q: How has the coronavirus (COVID-19) situation affected your company’s marketing spend across all channels? Percentages may not add to 100 because of rounding.
2“About the same” refers to ±3% change in budget.
IncreasedAbout the same2Reduced
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/20–4/28/2020, (US n = 607), (France n = 219), (Spain n = 215), (Italy n = 407), (UK n = 218), (Germany n = 414), (China n = 443), (South Korea n =
200), (Japan n = 202), (India n = 411), (Brazil n = 419)

9. McKinsey & Company 9
The importance of digital sales has almost doubled over that of
traditional sales interactions since the onset of COVID-19
Importance of digital vs traditional to
B2B buyers themselves1,2
Points allocated out of 100
1Q: Prior to COVID-19, how important were each of these methods in delivering an overall outstanding sales experience? Please distribute 100 points across these two items, giving more points to the method that you believe is more important to
you personally when interacting with your suppliers.
2Q: Now, thinking about the next two weeks given the environment with COVID-19, how important are each of these methods in delivering an overall outstanding sales experience? Please distribute 100 points across these two items, giving more
points to the method that you believe is more important to you personally when interacting with your suppliers.
3Q: Prior to COVID-19, how important was each method in delivering an overall outstanding sales experience? Distribute 100 points across these items, giving more points to the method that you believe is more important to your customers.
4Q: Now, thinking about the next two weeks given the environment with COVID-19, how important are each of these methods in delivering an overall outstanding sales experience? Please distribute 100 points across these two items, giving more
points to the method that you believe is more important to your customers.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/6–4/6/2020 (n = 400); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 443)
Importance of digital vs traditional to
B2B company customers3,4
Points allocated out of 100
48
63
52
37
Before COVID-19 April 27
+30%
46
63
54
37
Before COVID-19 April 6
+35%
Traditional Digital

10. McKinsey & Company 10
Digital, self-serve channels are now seen as the most beneficial for
researching suppliers; mobile app research has risen 400 percent
7
24
2
23
11
17
10
2
31
40
24
19
12
56
14
8
34
31
24 23
16
18 17
11
20
16 15
11
6
22
18
16
Google/
web
search
Call from
sales rep
Info on
mobile
app
Direct
mail from
sales rep
Supplier
website
Live chatOnline
material
from
supplier
Post on
social
media/online
Email from
sales rep
Text from
sales rep
Referral
from
someone
in my
industry
Customer
referral
Trade
show
Print
material
from
supplier
Industry
publication
Meeting
sales rep
in person
3% 633%423% 28% 1257% 1% 47% -61% 31% 94%-34% -60% -39% -41% -54%
1Q: What ways of interacting with a supplier would be most beneficial to you when researching/considering suppliers going forward? Rank up to 3 that would be most beneficial. A free-response option was given, but <1% of respondents filled it
out in 2020; ~5% of respondents answer ‘None of these’ as one of their top three responses in 2020.
65%
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/6–4/6/2020 (n = 400), McKinsey Global Omnichannel B2B Sales Survey, 2019 (n = 400)
% YoY changeX% 2019 2020Most beneficial supplier interactions for researching/considering suppliers1
% of respondents ranking in top 3
Digital
Self-serve Directed Self-serve Directed
Traditional

11. McKinsey & Company 11
Digital self-serve for order submission is now preferred significantly
more; mobile app ordering has risen 170 percent
18
27
69
53
65
43
25
48
46
49
29
34
28 28 27
Using my
company’s
e-procurement
portal
Using call
center/customer
service
Using a
mobile app
Emailing sales repUsing a supplier’s
website
Using my
company’s
procurement
department
Calling sales rep Ordering
from sales
rep in person
-36%172% -58% -58%71% 6%N/A -36%
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/6–4/6/2020 (n = 400), McKinsey Global Omnichannel B2B Sales Survey, 2019 (n = 400)
Self-serve Sales rep involvementInternal processes
Most preferred method for ordering1
% of respondents ranking in top 3
1Q: Which of the following methods do you/would you most prefer to use when submitting your order? Please rank up to 3 that would be most beneficial. Results for top 1 responses are consistent with top 3. A free-response option was given, but
<1% of respondents filled it out.
2Question was not asked in 2019.
N/A2
% YoY changeX% 2019 2020

12. McKinsey & Company 12
60
46
55
57
0
25
45
70
63
0
Inside sales team (eg, interacting with
customers on the phone)
In-person/field sales team (eg, meeting with
customers face to face)
Online/web support (eg, chatting with customers
via video/website/mobile app to support purchase)
E-commerce (eg, products/services sold directly
online with no sales rep involved)
Other
Before COVID-19 During COVID-19
Go-to-market sales model during COVID-191,2
% of respondents
98%
shifted their GTM
model3 during
COVID-19
The majority of companies that serve other businesses have shifted
their go-to-market model in response to the COVID-19 crisis
1Q: In what ways was your company’s product or service sold before COVID-19?
2Q: Now today, in what ways is your company’s product or service sold during COVID-19?
3Q: Which of the following statements best describe the changes your company has made to its commercial and go-to-market model during COVID-19?
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 443)

13. McKinsey & Company 13
E-commerce revenue is up 20 percent since the onset of COVID-19
Percent of company revenue driven by e-commerce before and during
COVID-19 (among companies that sell online)1,2
Average % of total revenue
44
52
During COVID-19Before COVID-19
+20%
1Q: Approximately what percentage of your company’s revenue before COVID-19 was driven by…Figures may not sum to 100% because of rounding.
2Q: Approximately what percentage of your company’s revenue during COVID-19 is now driven by…Figures may not sum to 100% because of rounding.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 443)

14. McKinsey & Company 14
E-commerce share of overall B2B company revenue is up in all
countries, most notably Brazil and Italy
Percent of company revenue driven by e-commerce before and
during COVID-19 (among companies that sell online)1,2
Average % of total revenue
45
56
51
47 46 47
44 42
47
61
42 40
56
65
56
64
51
57
52
47
53
68
62
52
All
countries
IndiaFrance JapanUKGermany SpainItaly China S. Korea Brazil US
1Q: Approximately what percentage of your company’s revenue before COVID-19 was driven by…Figures may not sum to 100% because of rounding.
2Q: Approximately what percentage of your company’s revenue during COVID-19 is now driven by…Figures may not sum to 100% because of rounding.
Before COVID-19
During COVID-19
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/20–4/28/2020, (US n = 607), (France n = 219), (Spain n = 215), (Italy n = 407), (UK n = 218), (Germany n = 414), (China n = 443),
(South Korea n = 200), (Japan n = 202), (India n = 411), (Brazil n = 419)
Europe APAC
23% 16% 11% 21%36% 20% 12%13% 11% 46% 29%12%
X% % change

15. McKinsey & Company 15
5
25
21
43
6
Somewhat less effective
April 6
As effective as before
Much less effective
Somewhat more effective
Much more effective
100
1Q: How effective is your company’s new sales model at reaching and serving customers? Figures may not sum to 100% because of rounding.
70% of B2B decision makers believe the new sales model is as effective
or more than prior to COVID-19 (up from 51% in early April)
Effectiveness of new sales model in reaching and serving customers1
% of respondents
7
40
23
28
2
April 27
100
51%
as effective or more so
compared to prior to
COVID-19
70%
as effective or more so
compared to prior to
COVID-19
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #1 4/6–4/6/2020 (n = 400); McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 443)

16. McKinsey & Company 16
Companies are likely to keep their new sales model for more than
12 months after the onset of the COVID-19 crisis
30
61
8
2
Very likely to sustain 12+ months after
Somewhat likely to sustain 12 months after
Unlikely to sustain 12 months after
N/A, made no go-to-market changes
91%
are “very likely” or “somewhat
likely” to sustain these shifts
12+ months after COVID-19
Staying power of new sales models1
% of respondents
1Q: Which of the following statements best describe the changes your company has made to its commercial and go-to-market model during COVID-19? Figures may not sum to 100% because of rounding.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 443)

17. McKinsey & Company 17
More than 90 percent of B2B companies have adjusted incentives in
response to the effects of COVID-19
53
30
22
21
14
6
Short-term bonuses/incentives
Lower quotas
Higher quotas
No change
More variable incentives
More fixed incentives
Sales team incentive structure changes in response to COVID-191
% of respondents
1Q: To what extent has your company made changes to the incentive structure of your sales team in light of COVID-19? Figures may not sum to 100% because of rounding.
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 443)

18. McKinsey & Company 18
28
28
16
11
10
4
3
Consumer/Retail
Advanced industries
Global energy and materials
Technology, media, and telecom
Global finance, banking, and insurance
Travel, transportation, and logistics
Pharma and medical products
9
19
19
19
19
14
$500M to < $1B
$1M to < $25M
$100M to < $500M
$25M to < $100M
$1B to < $10B
$10B+
1
2
13
37
36
9
2
2
100–499
500–999
<50
50–99
1,000–9,999
50,000–99,999
10,000–49,999
100,000+
1Percentages may not sum to 100 because of rounding.
Survey respondents by no. of employees of company
% of respondents1
Survey respondents by role in company
% of respondents1
Survey respondents by industry
% of respondents1
Survey respondents by annual revenue of company
% of respondents1
19
18
16
16
12
10
5
2
2
Top management
Operations
Sales
R&D/Innovation/Product design
Marketing
IT/computer services
Purchasing
Engineering
Shipping/logistics
B2B Pulse Decision-Maker Pulse #2: Respondent Overview
Pulse #1 closed on April 6, 2020 Pulse #2 closed on April 27, 2020
Source: McKinsey COVID-19 B2B Decision-Maker Pulse #2 4/23–4/27/2020 (n = 443)