South Carolina Business & Economic Update: Spring to Summer 2025

Over the last two months, South Carolina has seen a steady wave of business activity, investment announcements, and real estate movement. As we enter the heart of summer, momentum is building — both statewide and beyond. Here’s a breakdown of the most notable developments, along with a preview of what’s on the horizon.

South Carolina Business Developments (April–June 2025)

1. Job Growth in Manufacturing and Clean Energy: South Carolina continues to attract major industrial investment. BMW announced a new investment into EV battery production at their Spartanburg facility, while Redwood Materials is ramping up operations at their recycling plant in Berkeley County. These projects bring hundreds of high-wage jobs and expand the state’s role in the clean energy supply chain.

2. Tech and Service-Based Startups on the Rise: Columbia, Charleston, and Greenville are experiencing an uptick in startup activity. Incubators and accelerators like NEXT in Greenville and SOCO in Columbia have reported increased applications, particularly from app-based service ventures, logistics tech, and digital agencies. Local investors are showing more interest in early-stage funding, especially when paired with real estate backing.

3. Real Estate Market Cooling, But Select Areas Remain Hot: While housing price growth has moderated across much of the state, demand remains strong in coastal and suburban areas. Myrtle Beach, Mount Pleasant, and Fort Mill are still seeing upward price pressure due to in-migration from northern states. Developers are shifting focus from luxury builds to middle-income housing, anticipating a more value-driven buyer pool.

4. Small Business Credit Conditions Tighten: Access to capital for small businesses has become slightly more restrictive, with banks across the Southeast tightening lending standards. However, alternative lenders and private equity-backed funds have begun filling that gap, particularly for commercial real estate and service-based ventures.

Looking Ahead: Summer 2025 Expectations

• Tourism Surge: Coastal cities are preparing for a record summer as vacation rental bookings hit all-time highs. Expect boosts in local hospitality, retail, and seasonal employment.

• Construction Activity: Infrastructure projects funded by state and federal programs will break ground this summer, especially around Columbia’s transportation corridors and Charleston’s port upgrades.

• Workforce & Wages: Wage inflation may plateau as labor market growth normalizes, but employers in logistics, home services, and skilled trades are still aggressively hiring.

• 
  

U.S. Economy: Key Headlines and Trends

• Interest Rate Watch: The Federal Reserve has paused rate hikes for now. Economists anticipate a rate cut by late summer if inflation continues to ease.

• Consumer Spending Slows Slightly: Retail data shows a mild deceleration in discretionary spending, though essentials and services remain strong.

• AI and Tech Recovery: After a volatile Q1, tech stocks have rebounded, particularly in AI, chipmakers, and enterprise software. M&A activity is picking up in these sectors.

• Commercial Real Estate Struggles Continue: Office vacancy rates are high, particularly in major metros, pushing landlords to convert space into residential or mixed-use formats.

• 
  

World Economy and Global Headlines

• China Stimulus in Play: China’s central government announced a series of economic stimulus efforts to combat slowing growth, including real estate support and manufacturing tax incentives.

• European Stability Improving: Europe’s inflation is easing, and the ECB is hinting at potential rate reductions later this year, helping ease pressure on borrowers.

• Global Trade Tensions Rise: U.S.–China trade friction is back in the spotlight, with new tariff discussions around semiconductors, green energy components, and rare earths.

• Middle East Energy Dynamics: Oil prices remain relatively stable, but geopolitical tensions in the Strait of Hormuz and OPEC’s production decisions will continue to influence volatility.

  
  

Final Thoughts

South Carolina remains well-positioned for sustainable growth. The combination of advanced manufacturing, growing startup ecosystems, and steady infrastructure investment is creating a solid foundation. While national and global headwinds remain, the Palmetto State’s diversified economic base and community-driven innovation continue to provide resilience.

For entrepreneurs, investors, and anyone watching the future of this region — this is a time to stay informed, stay nimble, and stay engaged.