Courtesy / KeyBank
Ken Gavrity is president of Key Commercial Bank
Updated: 6 hours ago
Economic outlook shows businesses are staying focused on what they can control
After navigating the pandemic, businesses are approaching recent economic uncertainty with more resolve, according to a recent survey.
KeyBank's "Middle Market Sentiment Report" shows that 72% of business companies surveyed remain optimistic about the next 12 months, down slightly from 76% in the fourth quarter of 2024.
Businesses are staying focused on what they can control.
In the pandemic, businesses learned how to streamline processes, adopt smarter technology and beef up balance sheets. Now they're using those skills to weather today's economic pressures — tariffs, inflation and higher interest rates.
In addition to showing optimism and resilience, they're investing in their companies.
For report, KeyBank surveyed 750 senior executives from companies with annual revenues of $10 million to $1 billion.
"Despite policy shifts, tariff uncertainties and mixed market signals, leaders are ready to navigate the turbulence and enhance their business operations, particularly their digital capabilities. Companies are investing in AI, automation and advanced analytics to boost efficiency and gain a competitive edge," said Gavrity, president of Key Commercial Bank. "We’re witnessing the resilience of middle market companies more than ever."
Other findings
Despite policy and market uncertainties, 53% of executives view the broader U.S. economic outlook favorably for the next 12 months. In addition:
- 37% of companies are expanding operations
- 45% plan to expand AI and tech investments over the next 12 months.
- 34% are investing in workforce development and new product launches, a sign of confidence in long-term market opportunities
- 63% plan to "engage in M&A activity" by the end of 2025
- 47% plan to raise equity to support strategic plans.
"Many are transforming policy uncertainty into competitive advantage by leaning into operational efficiency, focusing on productivity of their teams and strategically using pricing levers," Gavrity said. "Disruption always creates opportunity, and those middle market companies with strong balance sheets and operational agility are showing a willingness to act in this environment."
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