The National Association of Manufacturers Q2 2025 Manufacturers’ Outlook Survey reveals optimism among manufacturers across the country has dropped sharply. Only 55.4 percent 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 percent of respondents, followed by increased raw material costs (66.1 percent) and rising health care/insurance costs (60.0 percent).
The survey finds 85.4 percent 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 8-27.
Of the manufacturers surveyed, 89.0 percent said that the cost of doing business has increased due to tariffs imposed this year. The average stated cost increase is 7.7 percent.
Of companies for which tariffs are applicable, 61.8 percent 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 percent on average, the highest rate of increase since Q2 2022 when the inflation rate was between 8 percent and 9 percent.
To view the full report, visit nam.org.
https://boardconvertingnews.com/nam-manufacturers-outlook-shows-trade-uncertainty-no-1-concern/
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