2025 Second Quarter Manufacturers’ Outlook Survey
Manufacturers’ Outlook Survey: Second Quarter 2025
The National Association of Manufacturers Q2 2025 Manufacturers’ Outlook Survey reveals optimism among manufacturers across the country has dropped sharply. Only 55.4% of respondents report a positive outlook for their companies—a nearly 15-percentage-point drop from Q1 and the lowest level since the height of the COVID-19 pandemic in Q2 of 2020.
Trade uncertainty remained the top business concern for the second consecutive quarter, cited by 77.0% of respondents, followed by increased raw material costs (66.1%) and rising health care/insurance costs (60.0%).
The survey finds 85.4% of manufacturers believe Congress should preserve pro-growth tax policies in response to trade uncertainty.
The NAM conducted the Q2 2025 Manufacturers’ Outlook Survey May. 8 – May 27.
Additional Findings:
- Of the manufacturers surveyed, 89.0% said that the cost of doing business has increased due to tariffs imposed this year. The average stated cost increase is 7.7%.
- Of companies for which tariffs are applicable, 61.8% of respondents said that their export opportunities have been
impacted. - When asked what manufacturers expect to happen with raw material prices and other input costs, respondents expect those costs to increase 5.8% on average, the highest rate of increase since Q2 2022 when the inflation rate was between 8% and 9%.