Economic Confidence Among Middle-Market Companies at Record Highs
The Government’s War Against Business is Over
Confidence in the US economy among middle-market companies has reached a new high in early Y 2017, the National Center for the Middle Market at Ohio State University said.
With 9 of 10 middle-market leaders indicating a positive perception of the country’s economy, this level of confidence represents the highest recorded in the Middle Market Indicator’s five-year history.
The Center obtained responses in early March from 1,000 CEOs, CFOs and other C-suite members of middle market firms, which are defined as companies with between $10-M and $1-B in annual revenues. Executives were asked about revenue, employment, investment, confidence and productivity, among other topics.
This high level of confidence is bolstered by year-over-year revenue growth from nearly three-quarters of all middle market companies.
This contributes to a 9.2% Y-Y revenue growth rate for middle market companies, exceeding the 5-year average of 6.6% and representing the highest rate ever recorded by the MMI.
Meanwhile, the increased confidence levels are not isolated just to the US economy, with middle market companies’ confidence in their local economies reaching a record high at 88%.
The middle market’s confidence in the global economy continues its dramatic ascent to 77%, up from 65% the previous Quarter and 51% during Q-1 of Y 2016.
“The middle market is continuing to benefit from and contribute to the boost in local, national and global economic confidence that followed the 2016 elections,” said NCMM Executive Director Thomas A. Stewart. “For this reason, we are likely to see increased domestic expansion and innovation, as well as sustained confidence, from many of these companies.”
Hiring is also on the rise among middle market businesses, with more than half adding to their employment rosters in the past year. The entire middle market has witnessed a 7.5% Y-Y employment growth rate, an increase from the previous Quarter by more than 2%.
This past year’s surge in merger and acquisition activity played a big part in this rise. Looking ahead, more than 4 out of 10 companies expect hiring increases over the next year.
“With impressive increases in revenue and employment growth, it’s unsurprising that 70% of middle market leaders have reported improvement in overall company performance in the last year,” said NCMM Managing Director Doug Farren. “As a result, we are going to see many companies expanding their services, launching new products and focusing on overall innovation.”