Middle Market Business Index Eases Amid Pricing Pressures


While the headline index reading continues to indicate middle market conditions are robust, the forward-looking Middle Market Business Index (MMBI) subindices imply that inflationary pressures and a tight labor market may in part account for reduced enthusiasm and uncertainty heading into 2019. Clouds are forming on the horizon related to declining fiscal outlays later in 2019, inflationary pressures, and an uncertain outlook for tariffs and trade policy. As operating margins become tighter, companies are evaluating their ability to pass through cost increases to their customers.

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