Index shows U.S. business strength

A business index remained robust in the second quarter of 2018, with business leaders signaling strong, positive, forward-looking expectations on revenues, earnings, hiring, and compensation, the U.S. Chamber of Commerce said this week.

Still, their hesitancy to invest in capital expenditures remains intact, with just over half planning to increase spending in the quarter ahead.

In the second quarter of 2018, the Middle Market Business Index posted a composite score of 134.5, a slight 2.2-point decrease from last quarter’s record-high of 136.7.A reading above 100 indicates an expanding middle market.

Middle market leaders’ optimism aligns with broader conditions, the U.S. Chamber of Commerce said.

These include the Fed’s recent interest rate increase, and an expectation that there will be additional increases later this year amid strong GDP growth and solid consumer spending, the chamber said in its recent announcement.