The National Association of Manufacturers (NAM) Q1 2026 Manufacturers’ Outlook Survey shows optimism among manufacturers is rising, with 75.3 percent reporting a positive outlook for their company, up 5.4 percentage points from the previous quarter.
For the first time since 2023, manufacturers’ outlook topped the historical average of 74.3 percent, and manufacturers expect most indices to improve meaningfully over the next 12 months. Sales and production are projected to rise 3.8 percent and 3.5 percent, respectively, up from the previous quarter’s forecast of 2.8 percent and 2.4 percent growth. The NAM conducted the survey over a 16-day period in February 2026.
Additional findings include:
70.6 percent of manufacturers cited trade uncertainties as a top business challenge for the fifth consecutive quarter.
For the second consecutive quarter, rising health care/insurance costs (69.8 percent) remained the second most-cited business challenge for manufacturers.
Raw material and other input costs are not anticipated to slow, rising at the same pace as projected in Q4 (4.1 percent) and ranking as the third-highest business concern at 57.5 percent.
A majority of manufacturers (54.6 percent) report they utilize either Canada or Mexico for critical parts of their supply chains—82.2 percent of those manufacturers say they source raw materials or other inputs from either country, while 62.7 percent benefit from a strong customer base across the border.
