US Middle Market Firms Maintain Growth Stance Amid AI Investment Push

Joe Brusuelas, chief economist at RSM US LLP, notes that capital spending levels are reaching a decade-long high. With 57% of firms reporting increased expenditures this quarter and 65% planning further outlays, companies are positioning themselves for an economy increasingly defined by artificial intelligence. This trend reflects a broader strategic pivot toward infrastructure that supports technological transformation.

Optimism remains widespread among executives, as 68% anticipate growth in both revenue and net earnings over the next six months. Hiring and compensation also remain core priorities, with 54% of firms expanding their staff this quarter and 66% planning to raise wages. However, inflationary pressure persists as a significant hurdle; 75% of respondents reported paying higher costs for inputs. To maintain margins, 66% of firms raised their own prices, a strategy 70% expect to continue through the end of the year.