U.S. middle-market companies extended their solid revenue and employment gains during the third quarter of 2013 and anticipate those trends will continue over the next 12 months, according to the National Center for the Middle Market’s (NCMM) 3Q 2013 Middle Market Indicator (MMI) report released today. Those gains, however, are predicted to come at a decelerating pace.
The MMI, which surveys 1,000 C-suite executives of companies with annual revenues between $10 million and $1 billion, reports that revenue growth continued during the third quarter with 62 percent reporting top-line improvements during the past 12 months. That’s up from 51 percent in the third quarter last year and flat compared to the 60 percent in 2Q 2013.
The mean revenue growth declined to 5.5 percent, its lowest gain since reaching that number a year earlier. Companies also expect performance to improve in 2014, with 60 percent projecting revenue growth on average at 4.4 percent. That’s down from 5.1 percent in the second quarter of this year but still an increase from the 3.7 percent forecast in the previous year.
Employment growth continues but could slow
The 3Q 2012 MMI also found that four of 10 companies said they added workers, on par with results over the previous quarter and up from 35 percent a year earlier. These companies reported mean job growth of 2.8 percent, up from 2.2 percent a year ago and 2.6 percent in the second quarter of this year.
About the Middle Market Indicator
Released quarterly by the National Center for the Middle Market, a collaboration between The Ohio State University Fisher College of Business and GE Capital, the Middle Market Indicator is the only resource of its type, providing performance data and forward-thinking insight on the middle market.
Visit the NCMM website to view or download the report.