The middle market was an economic powerhouse in the first quarter, posting record growth, according to a recent survey from RSM US LLP and the U.S. Chamber of Commerce.
RSM’s Middle Market Business Index rose to 129.8, up 9.7 points from the previous quarter on “underlying fundamental improvement in economic conditions during the past several months” and “expectations for significant tax reform and regulatory relief this year.” A reading above 100 for the MMBI shows expansion in the middle market, while one below 100 shows contraction.
Joseph Brusuelas, RSM’s Chief Economist, said the MMBI data indicates improvement in current and forward expectations of revenues and earnings for the next two years.
Meanwhile, labor issues remain a concern, with employers struggling to find skilled laborer with the proper training.
The MMBI is provided jointly by RSM and the U.S. Chamber of Commerce to help the business community and policy makers better understand the middle market and the issues it faces. The survey relies on the responses of 700 middle-market executives to 20 questions related to business performance, including revenue, profits, capital expenditures, among others.