2Q 2016 Middle Market Indicator

For the second consecutive quarter, year-over-year revenue growth rates among middle market companies are up and year-over-year employment growth rates increased for Q2 after remaining flat for the previous six months.


Key Insights

After two quarters in which revenue grew at about 6.1%, the growth rate climbed to 7.2% this quarter, mirroring the high levels of growth reported during the second half of 2014 and early 2015.

Employment growth is strong

While the percentage of middle market companies adding to their workforces has remained stable over the past year, mean total year-over-year employment growth is up this quarter to 4.4% compared to the 3.6% reported for the previous two quarters.

Confidence dips slightly

Since experiencing an uptick at the beginning of 2016, confidence in the national, state, and local economies remains relatively stable. However, the confidence levels may have peaked.

Investment plans are restrained

The middle market’s appetite for investment has not fluctuated much over the past four and a half years. Asked what they would do with an extra dollar of profit, a majority of businesses— currently 62%—express a desire to invest the money while fewer than four in 10 firms (38%) prefer to hold onto it as cash.


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