U.S. middle market companies recorded 7.2 percent average revenue growth in the second quarter of 2016, building upon already strong growth figures from Q1, according to the National Center for the Middle Market (NCMM). Combined with solid jobs gains through the same period, this finding headlines the Q2 2016 Middle Market Indicator (MMI), released by the NCMM.
"Middle market growth accelerated in the first half of 2016 compared to last year-a robust demonstration of continued gains even after seven full years of expansion" said NCMM Executive Director Thomas A. Stewart. "This quarter, we observed great improvement across the board, with all but one industry group reporting performance gains from the quarter before."
The retail trade industry posted strong signs across financial and hiring performance. Eighty-one percent of retail trade executives reported improved performance year-over-year, the largest percentage of any industry surveyed and an 11 percent increase from Q1 (70 percent).
Mean total employment growth within the industry was up 4.9 percent, outpacing the broader middle market at 4.4 percent. Just six percent of firms reported a decrease in the size of their workforce in the past year. Looking ahead, 97 percent of retail trade firms expect consistent or improving revenues in the next 12 months, with half (51 percent) projecting a rise in revenue growth.
Retail trade outpaced the wholesale trade industry in most metrics, but both sectors predict growth in the year ahead. Fifty-eight percent of wholesale trade executives foresee increased revenues in the next 12 months, compared to 51 percent of those in retail trade. Hiring outlooks are similar as well, with about one-third of companies in each industry planning to increase their workforce in the next twelve months.