![\"Albert](\"https:\/\/www.newsbeep.com\/us-fl\/wp-content\/uploads\/2026\/03\/Loh_Albert_t850.jpg\" "\\"Albert")
<\/p>\nManufacturing activity expanded in Jacksonville during April, but the outlook is uncertain, particularly with rising costs, according to a monthly survey by the University of North Florida\u2019s Local Economic Indicators Project.<\/p>\n
A Purchasing Managers\u2019 Index derived from the survey of Northeast Florida manufacturers registered 51.9 in April. A reading above 50 indicates expansion and a reading below 50 indicates contraction.<\/p>\n
The index has been above 50 so far in 2026 after being below it for much of 2025.<\/p>\n
However, the Business Activity Outlook Index stood at 50 in April, indicating uncertainty about the months ahead.<\/p>\n
<\/p>\n
Albert Loh<\/p>\n
UNF economist Albert Loh said in his report on the survey that several indicators supported expansion, including increased output, growth in new orders and a slight increase in export orders.<\/p>\n
\u201cThese readings suggest that Jacksonville manufacturers were still seeing enough demand to keep activity moving forward, particularly in areas tied to logistics, construction, and transportation,\u201d Loh said.<\/p>\n
\u201cAt the same time, the details show that this expansion came with clear caution signs. Backlogs were flat, finished goods inventories and stocks of purchased materials declined, supplier delivery times slowed, and manufacturing employment slipped slightly,\u201d he said.<\/p>\n
But the strongest warning signal came from the Input Prices Index, which stood at 84 in April as costs increased sharply for Jacksonville area manufacturers.<\/p>\n
Loh said price pressure was broad-based.<\/p>\n
\u201cResponding companies reported higher prices for raw materials such as aluminum, steel, copper, electronic components, wood materials, and transportation equipment,\u201d he said.<\/p>\n
\u201cFreight costs and transportation surcharges also increased, partly because of higher fuel costs. For a region closely tied to logistics, construction, manufacturing, distribution, and port activity, these cost increases can move quickly through the supply chain and put pressure on business margins.\u201d<\/p>\n
Another sign of uncertainty was the survey\u2019s Employment Index which was at 49 in April, indicating a slight decline in hiring.<\/p>\n
\u201cThis suggests that companies may be cautious about adding workers even while output and new orders may still show expansion,\u201d Loh said.<\/p>\n
A national monthly survey by the Institute for Supply Management produced similar results as in Jacksonville, with its Purchasing Managers Index at 52.7 in April but its Prices index at 84.6.<\/p>\n
\u201cTaken together, the Jacksonville and national readings point to a manufacturing sector that is still growing, but under pressure from high input costs, slower supplier deliveries, lean inventories, and cautious hiring,\u201d Loh said.<\/p>\n
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