The Real Economy: Volume 49
Middle market companies yet to embrace price hedging
THE REAL ECONOMY |
Despite growing cost pressures on their supply chains, just 14 percent of middle market companies surveyed appear to be hedging commodity prices for the longer term according to RSM’s Middle Market Business Index survey. This could be a worrisome indicator, says RSM’s Chief Economist Joseph Brusuelas, as the middle market may not yet be accepting the likelihood that inflationary pressure will continue to build in 2019. He notes, “We fully expect the Federal Reserve to continue additional rate hikes in 2019 that will likely lead to steeper pricing for commodities and tighter margins for medium-sized businesses, and signal a move into restrictive monetary policy.”
In this issue of The Real Economy, we examine this topic as well as a government shutdown’s fallout on food stamp program funding, real GDP growth projections, and the current state of environmental, social and corporate governance practices, benefits and reporting challenges. Download the full report.
IN THIS ISSUE
Despite mounting cost pressures, just a fraction of middle market companies appear to be hedging commodity prices for the longer term.
Oh, SNAP! The economic and political costs of not paying food stamp benefits during the government shutdown.
After a year of above-average growth, a new RSM monthly index projects real GDP return below 2 percent.
Without standardized reporting, it’s difficult to track environmental, social and governance performance in middle market companies.