MIDDLE MARKET INDICATOR AT A GLANCE
EMployment
EMployment
EMployment
revenue
revenue
REVENUE
expansion
expansion
expansion
economic confidence
economic confidence
economic confidence
CAPITAL INVESTMENT
CAPITAL INVESTMENT
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%