U.S. foreign direct investment jumps in 2025 as acquisitions drive $232.2 billion in spending

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US FDI jumps in 2025

Highlights

Foreign direct investors spend $232.2 billion in 2025 to acquire, establish, or expand U.S. businesses, a 49.5 percent increase from 2024.
Publishing industries attract $50.7 billion, chemicals manufacturing $45.4 billion, and manufacturing overall accounts for $121.8 billion or 52.5 percent of total expenditures.
Japan leads all investing countries with $50.5 billion, Europe contributes $116.6 billion, and California receives $59.7 billion, the highest among U.S. states.

2025 investment totals and spending breakdown

As reported by the U.S. Bureau of Economic Analysis, preliminary statistics show foreign direct investors spend $232.2 billion in 2025 to acquire, establish or expand U.S. businesses, up $76.8 billion, or 49.5 percent, from 2024. Acquisitions of existing U.S. businesses account for the vast majority of that activity, totaling $218.4 billion, while investors spend $4.6 billion to establish new businesses and $9.2 billion to expand existing foreign-owned operations.

Planned total expenditures, including first-year and future spending, stand at $284.5 billion. Employment at newly acquired, established or expanded foreign-owned businesses reaches 213,100 employees in 2025, while current employment at acquired enterprises alone is 211,700 and total planned employment is 232,400 when future staffing for new establishments and expansions is included.

By industry, publishing industries attract the largest volume of new direct investment at $50.7 billion, followed by chemicals manufacturing at $45.4 billion and plastics and rubber products manufacturing at $19.0 billion. Manufacturing as a whole accounts for $121.8 billion, representing 52.5 percent of total expenditures.

Regional, country and state impact

Japan ranks as the largest investing country in 2025 with $50.5 billion, followed by Germany with $26.7 billion and Canada with $23.5 billion. By region, Europe contributes $116.6 billion, or 50.2 percent of all new investment, while Asia and Pacific provides the second-largest amount at $71.9 billion.

California receives the most first-year investment by state at $59.7 billion, ahead of Texas at $21.5 billion and Pennsylvania at $20.9 billion. In employment linked to new investment, California also leads with 37,200 current employees, followed by Illinois with 17,600 and Texas with 16,500.

Greenfield investment, covering new establishments and expansions of existing foreign-owned U.S. businesses, totals $13.8 billion in 2025. Transportation and warehousing leads greenfield spending at $3.6 billion, followed by computers and electronics products manufacturing at $2.0 billion and chemicals manufacturing at $1.8 billion.

Investors from Asia and Pacific contribute the largest greenfield amount at $8.3 billion, led by Australia at $3.0 billion, South Korea at $2.2 billion and Japan at $1.7 billion. Louisiana receives the most greenfield investment at $3.0 billion, followed by Arizona at $2.7 billion and Texas at $1.9 billion, while planned total greenfield expenditures initiated in 2025 reach $66.1 billion.

Previously, we covered forecasts pointing to faster U.S. inflation growth in May as rising energy prices increased pressure on household budgets. Economists warned that consumer price growth could continue to outpace wage gains, adding uncertainty to the Federal Reserve's policy outlook and broader economic momentum.

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