Business conditions in the American real economy remained robust in the second quarter, bolstered by solid demand and strong productivity-enhancing business investment that sent the RSM US Middle Market Business Index to 130.6. The gain, up from 126.3 in the first quarter, came despite underlying inflationary pressures that have slightly soured sentiment on the economy.
Despite the risks to the economic outlook linked to inflation, supply chain disruptions and the energy price shock, we expect gross domestic product to expand by 2% for the year, a deceleration from last year’s 5.7% growth.