The Real Economy

The Real Economy: March 2023

The debt ceiling stalemate and the middle market

In this month’s issue of The Real Economy, RSM Chief Economist Joe Brusuelas looks at the growing standoff over raising the nation's debt ceiling, and what it means for America's real economy.

Already, middle market businesses and consumers are paying a price in the form of higher credit costs. If the standoff turns into a full-blown crisis, though, the costs to the middle market and the economy as a whole will skyrocket, Brusuelas writes. It’s a political stalemate that is in no one’s best interests.

What will happen to America’s real economy if the government defaults on its debt? RSM Chief Economist Joe Brusuelas lays out the scenarios, none of which are good.

If that weren't enough, Brusuelas, Mike Graziano and Tuan Nguyen in another article identify the concerning trend of rising inventories, which can leave businesses vulnerable if demand cools as expected later this year. Finally, Matt Riccio and Chris Wetmore look at ChatGPT and the impact that generative artificial intelligence is already having on the real estate industry.

Take a deep dive into these current events in the March issue of The Real Economy.

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The debt ceiling and the middle market

  • We are in the early stages of another round of brinkmanship over the nation’s finances.
  • The dispute has the potential to derail the nation’s economy.
  • Already, middle market businesses are paying a price in the form of higher credit costs.
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U.S. inventories are growing at twice the rate of sales

  • Inventories are growing at twice the rate of sales on a composite basis.
  • The surge raises the chance that firms will have excess supplies just as demand cools.
  • In the past, abnormal increases in inventories have led to dampened growth.
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Generative AI: Disruptive or flawed innovation for real estate?

  • Generative AI has a wide range of applications that will revolutionize real estate.
  • Already, AI-powered solutions are helping transform real estate organizations.
  • Generative AI can help automate manual tasks and eliminate repetitive responsibilities.

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Monthly economic analysis report for the US middle market

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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.