Transaction pros polled in April reported an increase in early-stage deal flow for the third consecutive month, according to the Mid-Market M&A Conditions Index (MACI), a barometer created by Mergers & Acquisitions and sponsored by PwC. (See related graphic.)

The April Composite score of 57.9 is the highest since October, when it hit 59.9. Dealmakers in April continued to forecast that M&A in 2015 will outshine 2014, which was a great year.

But there are some signs that deal flow may be starting to slow down. Based on preliminary data from Thomson Reuters, 181 transactions closed in April, down from 211 completed deals in the same month the previous year. On the macro economic front, the first quarter brought some sobering data. The U.S. gross domestic product increased at an annual rate of just 0.2 percent in the first quarter, significantly lower than the 2.2 percent increase seen in the fourth quarter, according to the U.S. Department of Commerce’s Bureau of Economic Analysis.

We’ll be watching the MACI very closely over the coming months to see if the Composite Score and especially the Leads and Signed Letters components continue to show expansion.

Editor’s Note: The MACI is a diffusion index, derived from monthly surveys of approximately 250 executives. Readings above 50 indicate an expansion in M&A activity, and readings below 50 indicate a contraction. For the previous edition of the MACI, see M&A Momentum Accelerated in March

 

M&A conditions index