Around 39% of businesses feel the economy has improved over the last quarter, according to RSM’s latest Middle Market Business Index (MMBI), the quarterly index and survey of approximately 700 senior executives.

Despite the largest interest rate rise in more than three decades, middle-market businesses remain confident heading into the year and are more positive about the economic outlook compared to Q4, with 39% saying the economy has already improved, a significant uptick from 25% the previous quarter.

In addition, 54% expect economic outlook to improve over the next quarter, an increase from 38% last quarter.