2025 First Quarter Manufacturers’ Outlook Survey
Manufacturers’ Outlook Survey: First Quarter 2025
The 51³Ô¹ÏÍø Q1 2025 Manufacturers’ Outlook Survey reveals growing concerns over trade uncertainties and increased raw material costs. Trade uncertainties surged to the top of manufacturers’ challenges, cited by 76.2% of respondents, jumping 20 percentage points from Q4 2024 and 40 percentage points from Q3 of last year. Increased raw material costs came in second, cited by 62.3% of respondents.
In the Q1 survey, 69.7% of survey respondents felt positive about their company’s outlook, down slightly from 70.9% in Q4 2024.
If Congress fails to act now on extending the Tax Cuts and Jobs Act, 69.35% of survey respondents said they would delay purchasing capital equipment, while 45.23% would hold off on hiring, 44.72% would stall expansion of operations, 41.71% would limit R&D investments and 40.20% would curb increases in employee wages or benefits.
The 51³Ô¹ÏÍø conducted the Q1 2025 Manufacturers’ Outlook Survey Feb. 11 – Feb. 28.
Additional Findings:
- Manufacturers expect prices on their company’s product line to increase 3.6% over the next 12 months, up from 2.3% in Q4 and the highest level since Q3 2022 when inflation was still more than 8%.
- Manufacturers expect raw material prices and other input costs to rise 5.5% over the next year. This marks the highest anticipated rate of increase since Q2 2022, when inflation hovered between 8% and 9%.
- Manufacturers expect export sales to increase just 0.1% over the next 12 months, the lowest level since Q2 2020—the height of the COVID-19 pandemic—highlighting challenges in global trade and demand.