Business
Umpqua Bank 2024 Business Barometer: U.S. Middle Market Optimism Surges, While Small Businesses Proceed Cautiously
Middle Market: Optimism soars to 68% and key growth indicators reach six-year highSmall Business: Mood and plans hover near pandemic-era lows, even as
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[{"type":"text","content":"Middle Market: Optimism soars to 68% and key growth indicators reach six-year highSmall Business: Mood and plans hover near pandemic-era lows, even as recession fears subside LAKE OSWEGO, Ore., June 13, 2024 /PRNewswire/ -- Umpqua Bank, a subsidiary of Columbia Banking System, Inc. (Nasdaq: COLB), today released the findings of its annual Business Barometer, an in-depth study into the mood, mindset and strategic priorities of small and middle market businesses across the U.S. For the first time in its six-year history, the study shows a widening gap between the outlook and plans of middle market companies and small businesses. Middle market optimism and key growth indicators have surged to six-year highs, while small businesses proceed cautiously as they manage persistent impacts of higher costs for goods and capital.\nSince 2019, middle market companies (defined as $10M--$500M in annual revenue) are consistently more optimistic and ready to make a variety of strategic investments than smaller businesses. However, the difference between the two sectors' optimism—which had been fairly narrow—widened sharply in 2024. This year, 68% of middle market companies rate the economic outlook as excellent or good compared to just 29% of small businesses.\n\nAccording to Umpqua Bank President Tory Nixon, middle market companies are poised to accelerate strategic investments and plans after a season of caution, while small businesses are even more inclined this year to hold steady as margins remain tight.\n\"It's a tale of two economies right now,\" said Nixon. \"While businesses of all sizes have proven resilient during a remarkable period of uncertainty and disruption, middle market companies have adapted especially well to the economic pressures of the past couple years. They are poised to move forward with the most confidence we've seen since our study began.\"\nNotable findings from this year's Business Barometer include the following:\nGrowing Middle Market Optimism Sparks Plans for GrowthNearly 7 in 10 middle market companies rank the current economy favorably, surpassing a majority for the first time and 22 points higher than last year. In the next 12 months, more companies than in any previous study expect demand for products and services to increase (70%) and greater profitability (60%). They are also more likely than ever to inves...