RSM US Middle Market Business Index Reflects Optimism

The RSM US Middle Market Business Index (MMBI) has shown an increase in business conditions, rising to 131.8 in the fourth quarter from 130.4 in the prior period. This growth, supported by strong household spending, business investment, and supply-side benefits, reflects optimism among middle-market executives. The survey, conducted from October 1 to October 22, 2024,

Become a Member

Members have access to all articles.

Membership
involved responses from 404 senior executives, highlighting their positive outlook on the economy. 44% of respondents reported improvements in the current quarter, with 62% expecting further growth in the next six months. The survey also indicated continued stability in revenues and net earnings, with expectations of continued improvement in the upcoming year.

RSM anticipates continued growth for middle-market firms, driven by lower taxes, reduced regulation, and a strong economy. While labor market challenges persist, with 54% of executives increasing compensation, hiring remains slow due to a shortage of skilled workers. Additionally, rising business costs have affected operations, with 68% of executives reporting higher expenses. Despite these challenges, there is a strong expectation for further expansion as companies adjust to favorable policy changes and capital investment opportunities. The MMBI data reflects the resilience and adaptability of the middle market, which remains a key driver of economic growth.

Read more