Our midyear Business Leaders Outlook Pulse survey revealed a notable decline in economic optimism among U.S. middle market executives, yet confidence in business performance remains strong. Optimism about the national economy has fallen by more than half, dropping from 65%, as reported six months ago, to 32% in June. Optimism about the global economy has also dropped by half, from 29% to 15%, and optimism about local economies fell to 35%—a 24 percentage point decrease.

Despite these declines in broader economic sentiment, confidence in individual business performance remains strong, with 58% of executives still optimistic about their own companies. Most (78%) also expect revenue and sales to increase or remain the same, and 72% expect profits to increase or remain the same.

This resilience underscores business leaders’ determination to navigate challenges and pursue growth opportunities even in uncertain times.