Optimism about the US economy has waned among midsize businesses, with only 39% of leaders feeling positive about the national economy in 2026, down from 65% in the previous year. However, confidence in their own firms remains higher, with 71% optimistic about their outlook for 2026.

Expectations for sales, earnings, and hiring have softened slightly, with 73% of survey respondents projecting increased revenue in 2026, compared to 74% last year. The middle market, representing businesses with $20 million to $500 million in annual revenue, plays a significant role in the US economy.

Midsize firms are a target for banks, private credit funds, and the private equity industry. Despite concerns about credit conditions, companies are entering 2026 with healthy balance sheets, positioning them as attractive targets for mergers and acquisitions in the coming year.

Amid worries over credit conditions and geopolitical uncertainty, midsize firms are cautiously optimistic about the economy. Confidence in their own firms remains relatively high, with plans for modest hiring and healthy balance sheets heading into 2026. Expectations for growth strategies, including mergers and acquisitions, are on the rise.

Read more at Yahoo Finance: America’s midsize businesses express ‘cautious optimism’ for 2026 after exuberant 2025: JPMorgan survey