A monthly survey of Jacksonville manufacturers by the University of North Florida’s Local Economic Indicators Project showed stability in the Northeast Florida economy at the end of 2023, with some positive signals for 2024.
A purchasing manager’s index derived from UNF’s Jacksonville Economic Monitoring Survey remained at 50 in December for the second straight month.
An index above 50 signals expansion and a number below it means contraction.
“Despite the challenges reflected in certain indices, the stable overall PMI of 50, combined with a positive outlook for business activities and continued expansion in employment, indicates resilience in the local economy,” UNF economist Albert Loh said in his monthly report on the manufacturers survey.
The employment index has been expanding for the last two months, Loh said.
“This is a positive sign for the local economy, as it suggests not only business confidence but also the potential for economic growth through increased employment, which can have a ripple effect on consumer spending and overall economic vitality,” he said.
The business activity outlook index is also expanding, a sign of optimism among Northeast Florida companies.
“The respondents’ comments like ‘Demand remains solid’ and ‘Market looks very good’ indicate a generally positive outlook, but the ‘pressure to reduce prices’ hints at some underlying concerns or challenges,” Loh said.
Six of the 12 indicators in the survey were expanding in December, with three contracting and three unchanged.
“These factors, along with an efficient supply chain, position Jacksonville favorably compared to the broader national trends,” Loh said.
The national purchasing manager’s index from the Institute for Supply Management rose from 46.7 in November to 47.4 in December, but that figure below 50 shows contraction nationally.
“The (Jacksonville) area’s ability to maintain stability amidst national economic headwinds speaks to the strength and adaptability of its local economy,” Loh said.
“This resilience, coupled with cautious optimism among businesses, suggests the potential for continued stability or growth in the Jacksonville economy, even as the national manufacturing sector faces more significant challenges.”