WASHINGTON — Foreign direct investment into the United States rose sharply in 2025, helping drive business expansion activity across manufacturing, technology and other sectors, according to data released by the U.S. Bureau of Economic Analysis (BEA) and reviewed by economists and industry groups on Monday.
The BEA reported that expenditures by foreign investors to acquire, establish or expand U.S. businesses reached $232.2 billion in 2025, an increase of nearly 50% from the previous year. The agency said acquisitions accounted for the largest share of activity, while foreign-owned companies also invested in new facilities and the expansion of existing operations. Employment at newly acquired, established or expanded foreign-owned businesses totaled more than 200,000 workers, according to the preliminary figures.
The data indicated that manufacturing attracted the largest portion of new foreign investment, accounting for more than half of total expenditures. Publishing industries, chemical manufacturing, and plastics and rubber products manufacturing were among the sectors receiving the highest levels of investment, the BEA said.
Foreign investment originated from a broad range of countries. Japan was the largest single source of new investment in 2025, followed by Germany and Canada, according to the agency. By region, Europe contributed the largest share of inflows, while Asia and the Pacific ranked second. California received the highest level of first-year investment expenditures among U.S. states, followed by Texas and Pennsylvania.
The figures were released as policymakers and business leaders continued to highlight the role of foreign capital in supporting domestic economic activity. The BEA said planned future expenditures associated with projects initiated in 2025 exceeded first-year spending levels, indicating that some investments are expected to continue over multiple years.
Government officials and industry representatives have pointed to investment announcements in manufacturing, technology infrastructure and advanced production as evidence of continued interest in the U.S. market. Recent corporate commitments involving semiconductor production, artificial intelligence infrastructure and industrial facilities have been cited by federal officials as examples of long-term business expansion plans.
“The manufacturing sector accounted for 52.5 percent of total expenditures,” the BEA said in its release, underscoring the sector’s role in attracting foreign capital.
Some economists cautioned that foreign investment levels can fluctuate from year to year because of large mergers, acquisitions and corporate transactions. Nevertheless, the latest figures showed a substantial increase from 2024 and marked a reversal after several years of weaker inflows, according to government data and industry reports.
As of Monday, federal agencies had not announced revisions to the preliminary 2025 figures. The BEA said its next annual report on new foreign direct investment in the United States is scheduled for release in 2027.
