WASHINGTON — Foreign direct investment in the United States rose to a record $232.2 billion in 2025, increasing nearly 50% from the previous year, according to preliminary data released by the U.S. Bureau of Economic Analysis (BEA) on June 10. The increase marked the strongest annual inflow in recent years and reversed a four-year period of declining investment.
The BEA said foreign investors spent $232.2 billion to acquire, establish, or expand U.S. businesses during 2025. Acquisitions of existing companies accounted for the majority of the investment activity, while smaller amounts were directed toward new business establishments and expansions of existing foreign-owned operations. Employment at newly acquired, established, or expanded foreign-owned businesses totaled about 213,100 workers, according to the agency.
“Expenditures by foreign direct investors to acquire, establish, or expand U.S. businesses totaled $232.2 billion in 2025,” the BEA said in its release announcing the figures. The agency reported that investment expenditures increased by $76.8 billion from 2024 levels.
Manufacturing attracted the largest share of investment, receiving approximately $121.8 billion, or more than half of total expenditures, according to the BEA. Among specific industries, publishing industries received the largest inflows, followed by chemicals manufacturing and plastics and rubber products manufacturing.
By country, Japan was the largest source of new foreign direct investment in the United States during 2025, contributing about $50.5 billion. Germany and Canada followed. Europe accounted for slightly more than half of all new investment, while the Asia-Pacific region was the second-largest source of inflows, according to the data.
California received the highest level of foreign investment among U.S. states, attracting approximately $59.7 billion. Texas and Pennsylvania ranked next, the BEA said.
Economists and market observers have pointed to several factors that may have supported investment activity, including continued interest in U.S. technology and manufacturing sectors. However, the BEA release did not identify specific transactions because survey responses remain confidential under federal law. Details regarding the individual investments that contributed most significantly to the increase remain unclear.
The figures are preliminary and may be revised. The BEA said its next annual report on new foreign direct investment in the United States, covering 2026, is scheduled for release in June 2027. As of mid-June, the agency had not announced any revisions to the 2025 data.
