Successive quarters of strong performance by the nation’s nearly 200,000 middle-market companies are fueling increased confidence in the national and global economies. According to the latest Middle Market Indicator (MMI), a survey of 1,000 middle-market executives released today by the National Center for the Middle Market (NCMM), revenue growth is stabilizing above five percent and employment growth projections have increased 20% over last quarter. The NCMM is a partnership between The Ohio State University’s Fisher College of Business and GE Capital.
According to this quarter’s MMI, mean revenue growth has stabilized above five percent, reaching 5.8% this quarter and projected at 5.1% for the year ahead. The highest growth gains are anticipated in the services and financial industries at six and 6.2% respectively. Retail trade forecasts the lowest revenue gain at 4.2%, which is still well above the S&P 500’s estimated revenue growth of 1.2%.
As revenue growth stabilizes significantly above the national average, employment growth is projected to increase 2.5%, which represents a 20% increase in forecasts compared to 2.1% for the first quarter of 2013. At this rate, the middle market will generate 70% of all new U.S. employment this year. Employment growth projections among middle-market manufacturers were particularly significant, increasing from 1.2% in the first quarter to 2.2%. Furthermore, 43% of all middle-market companies project employment increases over the next 12 months, compared to 38% of companies last quarter.
“Middle-market business leaders are becoming more optimistic about the U.S. and global economies, and are projecting current revenue growth within their own businesses to continue in the near future,” said Dan Henson, president and CEO of GE Capital, Americas. “With a developing sense of confidence, executives are beginning to reinvest in their businesses and hire additional staff. As the leading lender to the middle market, we’re committed to supporting this critical sector of the economy.”
To download the complete Q2/13 survey results click here.