Middle Market Confidence in U.S. Economy Reaches Record High
Business leaders representing the nation’s nearly 200,000 mid-sized firms are bullish about the U.S. economy, fueled by consistently strong revenue growth, according to the latest Middle Market Indicator (MMI), a quarterly survey of 1,000 C-suite executives conducted by the National Center for the Middle Market (NCMM).
In fact, middle market companies grew revenue over the past 12 months at 6.6%, nearly twice as fast as the S&P 500 at 3.4%. This strength boosted executive confidence in the U.S. economy to a record high of 68%. These results suggest continued growth for the nation’s economy despite the first-quarter drop in U.S. gross domestic product (GDP).
Employment growth for mid-market firms over the past 12 months was 3.2%, which added an estimated 750,000 jobs to U.S. payrolls so far in 2014. If mid-market companies deliver on projected job growth of 3.3%, the sector will create 59% of all new jobs in 2014.
“For the second quarter in a row, U.S. middle market companies turned in exceptionally strong growth in revenue along with solid gains in employment,” said Thomas A. Stewart, executive director, NCMM, a collaboration between GE Capital and The Ohio State University Fisher College of Business. “Mid-market executives seem to be determined to translate revenue increases into solid productivity improvements by holding the line on investments in capital and labor both.”
To view the full Middle Market Indicator report, click here.