A survey of mid-sized companies shows some pessimism about the economic outlook while maintaining hiring and spending plans.
The contrast between the survey findings from M&T Bank and the actions of executives may be a reflection of the volatility of financial markets and the presidential primary season, said Gary Keith, vice president and regional economist.
Keith said the noise surrounding recent financial and political news might be leading to “somewhat dour” outlooks reflected in the survey. “All of the noise has some impact,” he said.
The report indicated that about a quarter of middle market companies expect national economic conditions to improve over the next six months, versus 30 percent who expect conditions to deteriorate.
“Plans for capital expenditures were unchanged, hinting at the underlying strength in business confidence. Hiring expectations also remained fairly positive, with a net 27 percent planning to add new employees,” the report noted.
Due to the small sampling size of Delaware, it was hard to draw conclusions on any differences in the outlook when compared to other areas, Keith said
However, available data did not show any major differences in the overall outlook, he noted. Middle market companies in the New York City area were the most upbeat, followed by the Mid-Atlantic region.
According to Keith, middle market firms, with $10 million to $500 million in sales are a sometimes overlooked area that may be faring better than some larger businesses.
While not directly commenting on the downsizing plans by DuPont that have rattled legislators and business leaders, Keith noted that many middle market companies are less affected by global markets than their larger counterparts.
Keith also suspects that middle market companies are less reliant on large corporate customers than in the past. Over the years, companies like DuPont sharply reduced their vendor and supplier lists.
An M&T media representative noted that M&T itself, while not a middle market company, has 115 openings.
M&T has focused its efforts over the years on the mid-sized companies and features some of its customers in advertising messages.
