A survey of Jacksonville area manufacturers showed the local economy was contracting for the sixth straight month, with respondents offering a mixed outlook about the next 12 months.
However, a quarterly global survey by Jacksonville-based Dun & Bradstreet found increased optimism from businesses.
The monthly Jacksonville survey by the University of North Florida’s Local Economic Indicators Project produced a Purchasing Managers’ Index of 47.7 in September.
A reading below 50 in UNF’s Jacksonville Economic Monitoring Survey indicates contraction while a reading above 50 signals expansion.
“This indicates that overall business conditions in the Jacksonville manufacturing sector deteriorated slightly from the previous month, mirroring national trends,” UNF economist Albert Loh said in his report on the survey.
The Jacksonville index was similar to the 47.2 national PMI compiled by the Institute for Supply Management.
“Key areas contributing to this contraction include weak demand, as seen in the New Orders and New Export Orders indices, along with a decline in employment and backlog of orders,” Loh said.
Business Activity Outlook
The Business Activity Outlook in the Jacksonville survey stood at 50 in September, meaning an equal number of manufacturers expect growth and contraction in activity.
“This result reflects a cautious sentiment among manufacturers regarding the future. This neutral outlook may be influenced by a combination of steady but not growing demand, concerns over cost pressures, or broader uncertainties in the economic environment,” Loh said.
“While companies reported steady demand, they did not foresee significant improvements, suggesting they are holding back on expanding production or making new investments,” he said.
Employment Index
Among other key indicators of the JEMS survey, the Employment Index was at 46 in September, showing a slight contraction in workforce levels, while the Input Prices Index was at 46, signaling some relief in costs.
“These factors suggest that Jacksonville manufacturers are adopting a conservative approach, focusing on efficiency and managing costs rather than pursuing aggressive expansion,” Loh said.
Global Business Optimism Insights
Dun & Bradstreet’s quarterly Global Business Optimism Insights report found a 7% increase in business optimism, helped by easing of inflation and interest rates.
The report is based on surveys of about 10,000 businesses around the world in 17 sectors.
U.S. businesses reported a nearly 9% rise in optimism, the business data firm said.
“While overall global business optimism has increased and inflation has abated, it’s important to recognize that geopolitics contribute to economic uncertainty,” said Neeraj Sahai, president of Dun & Bradstreet International, in a news release.
“Industry-specific regulatory risks and more stringent data requirements have emerged as the top concerns among a third of respondents. To mitigate these risks, businesses are considering diversifying their supply chains and markets to manage regulatory risk,” he said.