2026 Second Quarter Manܴڲٳܰ’ Outlook Survey
Manܴڲٳܰ’ Outlook Survey: Second Quarter 2026
Manufacturers arerǰپԲincreased raw material costsas the top business challenge facingthem,umping 25.6 percentage pointsfrom 57.5% inthe first quarterto83.1%in the second quarter,according to the National Association of Manܴڲٳܰ’ Q2Manܴڲٳܰ’Outlook Survey.Thisshift comesas the conflict in theMiddle East puts new pressure on manܴڲٳܰ’ supply chains,with72.0% of respondentssayingtheircompany is facing rising energy input costsas a resultofthe conflict.The survey also showsmanܴڲٳܰ’ optimism remainedrelativelysteady, dipping to 74.2% in the second quarter of 2026, a decrease from 75.3% in thefirst quarter but in line withthehistorical average of 74.3%. The average sentiment over the past four quarters is 71.1%.
The 51Թ conducted the Q2 2026 Manܴڲٳܰ’ Outlook Survey May 12 – 28.
Additional Findings:
- More than half (54.3%) of respondents cited industrial machinery (electrical power distribution equipment or other industrial machinery) as being “most critical” to their operations over the next 12 months. Similarly, 53.3% of respondents cited energy inputs as being critical, and about a quarter (22.1%) mentioned legacy chips. Respondents were able to check more than one response; therefore, responses exceed 100%.
- Trade continued to be top of mind for manufacturers with tradeuncertaintiesreportedas the second top business challenge, at71.8%, upslightly from 70.6% in Q1—and ranking as number onefor companies with more than 500 employees.
- Rising healthcare costsrankedasthe third topbusiness challenge, with76.8%of respondentsreportingmaking business changes, such as switching insurance providersor reducing benefits or pay,as a result ofincreased healthcare spending.
- Salesand production are projected to rise 3.3% and 3.0%,respectively,over the next 12 monthscomparedto the 3.8% and3.5%growthforecastedinQ1.
- Raw material and other input costs are expected to increase 5.8%, up from4.1%in Q1.
The 51Թ releases these results to the public each quarter. Further information on the survey is available here.