The Real Economy: November 2024

How the higher cost of capital is affecting the real economy

The era of easy money has ended, and now money comes with a real cost. Business models built around zero interest rates—and services firms with exposure to those businesses—are adapting to the return of a higher cost of financing, write RSM’s Joe Brusuelas, Tuan Nguyen, Kevin Depew and Scott Reamer in the November issue of The Real Economy.

These higher capital costs will be particularly important in investment and risk decisions, specifically to rate-sensitive industries like financial services, technology and real estate.

Also in this issue, Joe Brusuelas examines what’s driving the outperformance of the U.S. economy compared to other G7 nations. Effective fiscal policies, increased productivity and strategic investments in technology and infrastructure all are playing a part. Another reason for this performance is the labor market, which is stronger than traditional figures like the unemployment rate suggest, Tuan Nguyen writes in a new analysis.

To thrive in the post-pandemic economy, firm managers need a different understanding of commercial conditions under structurally higher interest rates.
Joe Brusuelas, RSM Chief Economist

Finally, the November issue includes a preview of the upcoming RSM special report on sustainability for middle market firms, highlighting priorities, challenges, technology’s role and more.

We look at these topics and more in this issue of The Real Economy.

Inside the November issue:

RSM contributors

The Real Economy Livestream series

Post-election economic outlook: Trends and insights for middle market businesses

Join RSM US Chief Economist Joe Brusuelas and U.S. Chamber of Commerce Executive Vice President Neil Bradley as they discuss the economic outlook in a post-election climate.

Wednesay, December 4, 2024

Subscribe to RSM's economic insights

Timely economic analysis and trends to help middle market businesses succeed

Special report

Middle market is confident about AI, despite early-stage adoption changes

  • 78% of respondents say their organization either formally or informally uses AI
  • 41% report being in the partial implementation phase for AI
  • 58% of those who use generative AI want to use it to improve quality control

Also from The Real Economy

Monthly economic analysis report for the US middle market

The Real Economy Blog

The Real Economy Blog was developed to provide timely economic insights about the middle market economy. It is offered as a complement to RSM’s macroeconomic thought leadership, including The Real Economy monthly publication and the proprietary RSM US Middle Market Business Index (MMBI).

The voice of the middle market

Middle market organizations, which make up the “real economy,” are too big to be small and too small to be big. They have distinct challenges and opportunities around resources, labor, technology, innovation, regulation and more.