Middle Market Business Optimism Grows Amid Rising Revenues and Earnings

The RSM US Middle Market Business Index (MMBI) rose to 131.5 in Q4 2025 from 123.3 in the prior quarter, reflecting stronger revenues and earnings among U.S. middle market firms. Despite cautious views on the broader economy, businesses report growing optimism fueled by eased regulations, tax relief, retroactive full expensing of capital expenditures, and lower interest rates.

• Revenue growth: 52% of firms reported increased revenues in Q4, 58% expect growth in the next six months.

• Earnings: 50% reported higher net earnings, with 56% expecting continued gains.

• Capital expenditures: 48% increased spending this quarter, and 53% plan to invest more in the next six months.

While optimism rises, middle market firms still face challenges such as pricing pressures, inflation, and a tight labor market. About 71% reported higher input costs, and 61% have been able to pass these along to customers. Labor demand is cooling slightly, though firms continue to invest in talent through higher wages and targeted hiring.

WY It Matters: For Wyoming’s businesses and industries, particularly energy, manufacturing, and middle-market enterprises, these trends signal opportunities for growth and investment. Rising revenues and earnings across the middle market can translate into expanded projects, higher capital expenditures, and increased demand for skilled labor locally. Tax relief and regulatory improvements provide Wyoming companies with greater flexibility to invest in equipment, technology, and workforce development, strengthening the state’s competitiveness and long-term economic outlook.

By keeping a close eye on these trends, Wyoming businesses can strategically plan for expansion, navigate inflationary pressures, and position themselves to take advantage of favorable policies affecting the middle market nationwide.