Page 20 - The South China Business Journal
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C. Today

“Now is the time for middle market companies to Built in collaboration with Moody’s Analytics, the MMBI is borne
invest in their businesses, as for many companies, the out of the subset of questions in the survey that ask respondents to
new tax rate is likely the lowest in their lifetime,” added report the change in a variety of indicators. Respondents are asked a
Brusuelas. “It is paramount the middle market begins total of 20 questions patterned after those in other qualitative business
to get ahead of the curve of the coming disruption to surveys, such as those from the Institute of Supply Management and
their industries. The primary way to do that is to invest National Federation of Independent Businesses.
in software, equipment and intellectual property.”
The 20 questions relate to changes in various measures of their
The survey data that informs the index reading was business, such as revenues, profits, capital expenditures, hiring,
gathered between January 12 and February 5, 2018. A employee compensation, prices paid, prices received and inventories.
special addendum to this quarter’s MMBI focused on There are also questions that pertain to the economy and outlook, as
cybersecurity will be released in April. well as to credit availability and borrowing. For 10 of the questions,
respondents are asked to report the change from the previous quarter;
About the RSM US Middle Market Business Index for the other 10 they are asked to state the likely direction of these same
indicators six months ahead.
RSM US LLP and the U.S. Chamber of Commerce have partnered
to present the RSM US Middle Market Business Index (MMBI). It is The responses to each question are reported as diffusion indexes. The
based on research of middle market firms conducted by Harris Poll, MMBI is a composite index computed as an equal weighted sum of the
which began in the first quarter of 2015. The survey is conducted four diffusion indexes for 10 survey questions plus 100 to keep the MMBI
times a year, in the first month of each quarter: January, April, July and from becoming negative. A reading above 100 for the MMBI indicates
October. The survey panel consists of 700 middle market executives that the middle market is generally expanding; below 100 indicates that
and is designed to accurately reflect conditions in the middle market. it is generally contracting. The distance from 100 is indicative of the
strength of the expansion or contraction.

18 AmCham South China
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