America's midsize businesses express 'cautious optimism' for 2026 after exuberant 2025: JPMorgan survey

Core Insights - Optimism about the US economy among midsize businesses has significantly decreased, with only 39% expressing optimism for 2026, down from 65% the previous year [1] - Despite the decline in national economic optimism, confidence in individual firms remains relatively high, with 71% of executives optimistic about their own firms' outlook for 2026 [2] Economic Sentiment - The survey indicates a softening in expectations for sales, earnings, and hiring, with 73% expecting increased revenue, 64% projecting higher profits, and 48% planning to expand their workforce, all showing slight declines from the previous year [3] - Midsize firms, defined as those with annual revenues between $20 million and $500 million, represent about one-third of all US private-sector revenue and employment, making their sentiment a crucial economic indicator [4] Growth Strategies - There is an increasing appetite for mergers and acquisitions, with 39% of respondents planning to include M&A in their growth strategies for 2026, up from 31% a year ago [6] - The private equity industry and M&A bankers are anticipating a rebound in smaller deals, contrasting with last year's focus on megadeals over $10 billion [7]