The RSM U.S. Middle Market Business Index (MMBI) remained near recent highs, registering at 111.8 for the third quarter, which is a statistically insignificant change from 113.6 in the previous quarter. The reading reflects solid business conditions as rising profits, sustained business investment and recently enacted tax cuts continue to support growth and confidence across the middle market.

"The American middle market is prospering amid a solid economic expansion," said Joe Brusuelas, chief economist with RSM US LLP. "By almost every measure in our survey, executives expressed optimism, with revenues and net earnings pointing to favorable growth conditions ahead. Sustained capital spending remains one of the strongest signals of confidence in the economic outlook as businesses prepare for the next phase of economic and technological change." 

Middle Market Executives Anticipate Continued Growth

The third quarter survey data demonstrate that middle market executives are maintaining a positive outlook, with 68% anticipating both revenues and net earnings to increase over the next six months. Fifty-eight percent of executives also expect the overall economy to improve.

Current quarter results also point to solid underlying conditions: 43% of executives reported that the economy improved, 58% said revenues increased and 59% reported higher net earnings.

Capital Expenditures Position Firms for Evolving Economy

Since the economic shock of the pandemic, middle market businesses have increased capital expenditures to prepare for a rapidly changing economy.

In the third quarter, 57% of respondents reported increased spending on capital expenditures and 65% said they expect to raise those outlays over the next six months.

"This is the most encouraging long-term trend we have observed in the middle market in the survey's decade-long history," Brusuelas said. "Businesses are making productivity-enhancing investments that can position them to compete and grow in an economy increasingly shaped by AI. The sustained increase in capital spending is consistent with the broader buildout of AI infrastructure and the economic transformation it is expected to drive."

Workforce Investment Remains Middle Market Priority

For the second consecutive quarter, more than half (54%) of the survey respondents increased hiring in the current quarter, while 60% said they plan to add employees over the next six months.

Firms also continue to invest in their workforce with 57% reporting they increased compensation during the current quarter and 66% expecting to increase compensation over the next six months.

Persistent Inflation Sustains Pricing Pressures

The most pressing economic challenge for middle market firms continues to be inflation: 75% of respondents indicated that they paid higher prices in the current quarter, while 76% expect to do so going forward.

The survey data also suggests that firms are offsetting higher input costs through a mix of margin compression and downstream price increases. Roughly 66% of participants indicated they increased prices in the current quarter, and 70% said they expect to do so over the next six months.

The survey data that informs this index reading was gathered from 501 respondents at middle market firms in the United States from July 7 to July 29, 2026.