2Q21 MMI

MIDDLE MARKET INDICATOR AT A GLANCE

EMployment

revenue

REVENUE

expansion

economic confidence

CAPITAL INVESTMENT

SUMMARY VIDEO

SUMMARY video

SUMMAry video

Year-over-year top line revenue growth surges to 8.0%

A majority of companies report an increase in revenue growth since June 2020, a solid indicator that a healthy recovery is underway for the sector as a whole even as a third of businesses continue to report no change or declining revenues. Overall, middle market companies see the recovery continuing full force into 2022 with strong predictions for continued robust revenue growth over the next 12 months.

Year-over-year employment growth increases by nearly 6%

As with revenues, the rate of year-over-year employment growth jumped notably with nearly half of companies in the process of rebuilding and growing their workforces. A majority of companies (57%) intend to add additional jobs over the next 12 months and the rate of employment growth is expected to escalate higher as the recovery continues.

5.9%

45%

8.9%

growth over the past 12 months

growth projected over the next 12 months

of middle market companies report employment growth over the past 12 months

Compared to 24% in 2Q’20

66%

9.8%

8.0%

growth projected over the next 12 months

growth over the past 12 months

of middle market companies report increased revenue over the past 12 months

Compared to 38% in 2Q’20

Confidence rises above pre-pandemic levels

Global, national, and local economic confidence levels continue to build with four out of five executives reporting as least some confidence in global conditions while nine out of 10 middle market business leaders express positive feelings about local conditions.

The proportion of middle market business leaders willing to immediately put an extra dollar to work in their companies continues to inch up, but slowly. Among the 42% of leaders who continue to prefer holding cash, a solid majority indicate that they would earmark the money for future investments.

Investment appetites are slower to recover

Expansion activity is beginning to slowly resume for some companies after declining steadily over the past two years. At the same time, the proportion of firms taking on new debt is lower than one year ago.

Expansion into new markets increases as fewer companies take on debt

Will Invest

Compared to 57% in 4Q'20

58%

38%

16%

32%

91%

Local Economy

4Q‘20 | 71%

89%

National Economy

4Q’20 | 67%

81%

Global Economy

4Q’20 | 60%

Performance Improves, But Caution Bell Still Tolls

of middle market companies took on new debt

Compared to 19% in 2Q'20

of middle market companies introduced a new product or service

Compared to 42% in 2Q'20

of middle market companies expanded into new domestic markets

Compared to 30% in 2Q'20

16%

32%

38%