- Foreign direct investment in the United States (FDIUS) totaled $102 billion in the
second quarter of 2025, a 137 percent increase over the first quarter of 2025. - Net equity flows registered $39 billion in the second quarter of 2025, increasing more
than fivefold from the previous quarter. - Reinvestment of earnings stood at $54 billion in the second quarter of 2025,
accounting for more than half of FDIUS. - Foreign direct investment in the United States in 2024 was $292 billion, making it a
weaker-than-average year for FDIUS over the past decade. - Quarterly FDIUS flows are subject to large revisions and can fluctuate greatly from
quarter to quarter. - Despite increased global competition for foreign investment, the United States remains
a prime investment market that offers several significant advantages, including a
large consumer base, developed financial markets, and strong legal protections for
investors. Together, these advantages have long attracted foreign capital to the
United States, which creates new jobs across the American economy, bolsters American
innovation, and enhances America’s global competitiveness.
Analysis & Context
Foreign direct investment flows in the United States in the second quarter of 2025 totaled $102 billion. The first time flows have exceeded $100 billion since the third quarter of 2022. Reinvested earnings made up the largest portion of FDIUS at 53 percent in the second quarter of 2025. Equity soared more than 450 percent between the first and second quarters of the year to $39 billion.
During the first six months of 2025, Japan and the United Kingdom were the top investors in the United States, each investing at least $25 billion. The Netherlands, Germany, and Canada completed the list of the top five investors in FDIUS flows.
Manufacturing led in FDIUS flows in the first six months of 2025 at $71 billion, followed by information and wholesale trade, at $17 billion and $13 billion, respectively. Machinery was the largest manufacturing segment by FDIUS at $3.3 billion.
Looking at foreign direct investment more broadly, international companies invest in the United States for many reasons. A list of positive factors includes the large U.S. market, world-class research universities, and a solid infrastructure that allows businesses to easily access the U.S. market. For certain international investors, the United States has become an important global export platform. Good domestic energy resources also draw international investors to the United States.
These investments benefit the American economy as international firms build new factories across the United States, buoy their well-established U.S. operations, fund American research and development activities, and employ 8.4 million Americans in well-paying jobs.
The United States was the world’s top destination for FDI flows in 2024, and cumulatively,
it remains the world’s prime location for international investment. Most nations are eager to attract foreign investment, but many engage in protectionist activities, such as raising regulatory
barriers for foreign investment and tightly monitoring cross-border mergers and acquisitions.
The United States’ ability to maintain its position as the world’s most appealing investment location depends on political and policy changes, along with macroeconomic policy decisions, both in the United States and abroad.
Foreign Direct Investment in the United States, Preliminary 2nd Quarter 2025
