JP Morgan - Business Leaders Outlook, 2023

The 2023 Midyear Business Leaders Outlook report provides insights into the current state of midsize companies in the United States. The report highlights that while optimism is up from January, it is still far below pre-pandemic levels. Midsize business leaders are less optimistic about the national economy now than they were in the years before the pandemic. Rising costs of business are a major challenge, with more than three-fourths of businesses experiencing cost increases. In response, most companies plan to continue increasing prices for consumers and buyers. Labor shortages are also a significant external threat, with more than 20% of respondents citing it as their number one concern. Despite these challenges, more than 8 in 10 businesses are planning to add or maintain headcount. Business leaders are less optimistic than before the pandemic, but there are still reasons to be hopeful. Almost half of U.S. business leaders expect a recession this year or believe we are already in one. An additional 20% are not sure about an economic downturn. The report also includes policy recommendations for the Federal Reserve, with business leaders divided on whether to pause rate hikes, raise rates, or cut rates. Overall, the report provides a comprehensive overview of the current state of midsize companies in the United States and the challenges and opportunities they face.