RSM US Middle Market Business Index Eases, Business Conditions Remain Solid

Survey results highlight middle market resiliency and forward-looking optimism amid lingering inflation

RSM US Middle Market Business Index (MMBI), presented by RSM US LLP in partnership with the U.S. Chamber of Commerce, eased to 131.3 in the second quarter, down modestly from 134.0 in the first quarter on a seasonally adjusted basis. This top-line sentiment indicates that despite a variety of shocks to the real economy over the past two years, overall business conditions remain solid. The 131.3 reading is in line with the 2017−2020 period before the pandemic, when the middle market generally thrived following steep federal tax cuts, a large increase in federal spending and low interest rates.

"Resilience – not recession – is the primary takeaway from this quarter's survey results," said Joe Brusuelas, chief economist with RSM US LLP. "The easing in topline sentiment reflects executives' views on the current economy, which has been tempered by lingering inflation, higher wage costs and the recent disruption among small and regional banks. The survey results show a clear divergence on sentiment when looking ahead over the next six months – likely because we're capturing an economy in transition."