News release

Middle Market Business Index Captures Severe Shocks to Economy

May 15, 2020
May 15, 2020
0 min. read

Andreia DeVries, National Public Relations Manager, andreia.devries@rsmus.com, 212.520.1266
for media use only 

The RSM US Middle Market Business Index (MMBI), presented by RSM US LLP (“RSM”) in partnership with the U.S. Chamber of Commerce, dramatically decreased by more than 21 points to 88.4 in the second quarter 2020, capturing the severe shocks to the economy resulting from the COVID-19 pandemic. The April reading is a drop from March’s 109.8 and the first quarter final reading of 131.4 (RSM began measuring the MMBI monthly in March 2020 to capture the impact of the COVID-19 pandemic). Middle market business conditions have suffered significant declines since the onset of the pandemic as the economy has effectively shut down following the combination of self-imposed social distancing by the public and shelter-in-place guidance issued by governments at the federal, state and local levels. 

The decline indicates middle market executives see these economic shocks as large and pervasive, and they do not anticipate significant improvement in the economy, earnings or revenues over the next six months. At the time of the survey, approximately 83% of respondents indicated a general decline in economic conditions, with 61% noting a decline in gross revenues, and 59% reporting a decline in net earnings during that time. The future outlooks are similarly grim, with 51% of respondents expecting a continued decline in the overall economy during the next six months and 50% expecting to see a decline in revenue and net earnings.     


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