New foreign direct investment in the United States dropped by $185.1 billion – or 51 percent – in 2022, compared to the $362.6 billion recorded the previous year, the Commerce Department reported.
Expenditures by foreign direct investors to acquire, establish or expand US businesses totaled $177.5 billion in 2022, according to the Bureau of Economic Analysis report.
Expenditures were below the annual average of $298.8 billion for 2014–2021. As in previous years, acquisitions of existing businesses accounted for most of total expenditures, Commerce said.
In 2022, expenditures for acquisitions were $169.4 billion, expenditures to establish new US businesses were $3.8 billion and expenditures to expand existing foreign-owned businesses were $4.4 billion. Planned total expenditures, which include both first-year and planned future expenditures, were $255.1 billion.
By industry, expenditures for new FDI were largest in the manufacturing sector, at $55.2 billion, accounting for 31.1 percent of total expenditures. Within manufacturing, expenditures were largest in chemical manufacturing ($21.5 billion) and machinery ($9.9 billion). There also were notable expenditures in the information sector ($28.2 billion).
By country, Canada was the largest investor, with expenditures of $37.9 billion. The United Kingdom ($34.7 billion) was the second-largest country, followed by France ($16.5 billion). By region, Europe contributed 57.4 percent of new investment in 2022.
By state, California received the most investment, totaling $29 billion, followed by Texas ($20.7 billion) and Illinois ($10.9 billion).
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