NCMM: Middle Market Continues to Lose Confidence
Published July 24, 2012
The National Center for the Middle Market (NCMM) announced that year-over-year revenue growth for the middle market has slowed from 6.9% to 6.1% according to findings unveiled today in the Q2 Middle Market Indicator (MMI), a quarterly look at the health and outlook of middle market companies in the U.S. With companies in the middle market ($10M to $1B in revenues) accounting of over a third of private employment and 41% of GDP, they are a major indicator of the health of the US economy.
The NCMM is a partnership between The Ohio State University Fisher College of Business and GE Capital. The MMI is a quarterly survey of 1,000 CEOs, CFOs and other C-level executives from a geographically balanced sample of leading middle market companies in the United States. The survey examines the health and outlook of middle market businesses by analyzing capabilities, performance, growth drivers and overall economic outlook.
. The middle market continues to lose confidence in the global and U.S. economies
. Future investment to remain limited; businesses continue to hold cash in the face of uncertainty
. Revenue growth seen but slowing
. Employment growth is stable and projected to hold into next year
. Challenges to middle market business performance persist
“The middle market is the bellwether for the U.S. economy. This quarter’s indicator is showing that while the middle market continues to see revenue growth, hiring and job creation, it is becoming more conservative,” said Dr. Anil Makhija, academic director of the National Center for the Middle Market. “Compared with last quarter’s results, we are seeing some softening and a greater emphasis on building a stronger cash position. Still, middle market companies continue to demonstrate their ability to grow and outperform both large and small businesses despite headwinds and uncertainties related to government action and the global economy.”
To read the full NCMM news release click here.