FDI Confidence Index Favors the U.S.

According to the 2013 Foreign Direct Investment Confidence Index (FDICI), a survey on investment sentiment from global consulting firm A.T. Kearney, the United States may be displacing China as the leader for foreign direct investment, suggesting an increased sentiment for manufacturing reshoring. The survey, conducted between October and November 2012, showed the U.S. in first place for the first time since 2001, while China dropped to second place. Other highly ranked countries in the 2013 FDICI included Canada (ranked fourth), Australia (sixth), Germany (seventh) and the United Kingdom (eighth).

The annual survey of more than 300 executives in 28 nations ranks countries based on how political, economic and regulatory changes are expected to affect foreign direct investment and where global investment dollars are likely to be headed in the coming year. The 2013 survey was influenced by respondent anticipation of factors such as a fall in emerging markets, the Eurozone crisis, China’s rising labor costs and the United States’ steady but slow recovery.

According to A.T. Kearney, the survey results demonstrate a cautious optimism from executives. More than half the respondents believe that the global economy will recover from financial crisis and recessions within the next two years, a shift in sentiment from 2010 when 42 percent believed the recovery would take place in just one year. Additionally, 63 percent of recipients expected some economic growth in the United States, compared with 62 percent who believe that Europe will see no growth or return to recession over the next three years.

A.T. Kearney, visit atkearney.com.