A monthly survey of Northeast Florida manufacturers by the University of North Florida\u2019s Local Economic Indicators Project showed conditions improving and optimism about 2026, but businesses are not hiring more workers.<\/p>\n
A Purchasing Managers\u2019 Index derived from the survey registered 52.4 in January, signaling modest expansion.<\/p>\n
A reading above 50 indicates expansion, while an index below 50 indicates manufacturing activity is contracting. The PMI was below 50 for much of 2025.<\/p>\n
The survey\u2019s Business Activity Outlook Index registered 55 in January, suggesting Jacksonville area manufacturers are expecting conditions to improve over the next 12 months.<\/p>\n
However, the survey\u2019s Employment Index was at 48, meaning more companies were reducing headcount than adding jobs.<\/p>\n
\u201cSeveral underlying indicators point to steady demand: output and new orders are expanding, export orders are improving, and backlogs are building,\u201d UNF economist Albert Loh said in his monthly report on the survey.<\/p>\n
\u201cFirms are also increasing input purchases, which typically reflects expectations for near-term production. Together, these measures suggest that Jacksonville companies are seeing enough business to keep operations active and cautiously plan for growth over the next few months,\u201d he said.<\/p>\n
The outlook index \u201csuggests confidence is positive but not exuberant \u2013 manufacturers generally see growth ahead, but the outlook is measured rather than booming. It points to\u00a0<\/p>\n
cautious optimism that demand and operations will strengthen as the year unfolds,\u201d Loh said.<\/p>\n
The caution is reflected in the employment gauge indicating contraction in manufacturing labor.<\/p>\n
\u201cSome may rely more on overtime, temporary workers, or productivity improvements instead of expanding payrolls,\u201d Loh said.<\/p>\n
Another cautionary trend is increasing input and output prices, which are squeezing profit margins, he said.<\/p>\n
But the overall trends from the January survey indicate positive conditions in the manufacturing sector in Northeast Florida.<\/p>\n
\u201cThese signals suggest Jacksonville\u2019s economy has some forward momentum and could benefit if demand continues to firm up,\u201d Loh said.<\/p>\n
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