A monthly survey of Jacksonville area manufacturers by the University of North Florida’s Local Economic Indicators Project showed improving trends to start 2025.
However, a quarterly global survey by Jacksonville-based business data firm Dun & Bradstreet indicated a more pessimistic outlook around the world about the economy.
The survey by UNF’s Jacksonville Economic Monitoring Survey produced a Purchasing Managers’ Index of 51 in January, suggesting a modest expansion in the Northeast Florida manufacturing sector.
An index above 50 indicates expansion while a reading below 50 signals contraction.
Other readings within the survey indicated an expanding manufacturing economy.
“The local new orders index of 56 suggests strong demand growth. Additionally, employment remained stable with an index of 51, reflecting measured hiring rather than significant layoffs,” UNF economist Albert Loh said in his monthly report on the survey.
“However, challenges remain, particularly with input costs rising and backlogs of work continuing to contract, suggesting that manufacturers are fulfilling orders faster than new backlogs are forming,” he said.
“Despite these mixed signals, the fact that Jacksonville’s economy is keeping pace with national trends suggests resilience in the region’s manufacturing base.”
A national PMI from the Institute for Supply Management stood at 50.9 in January, close to the Jacksonville PMI.
The business activity outlook from Jacksonville area manufacturers surveyed was at 54 in January, reflecting optimism about growth in the next 12 months.
“Respondents noted strong orders and momentum, though they remain cautious about cost pressures and supply chain management,” Loh said.
“Jacksonville’s position as a logistics hub and its strong presence in transportation equipment, chemical products, and machinery – sectors that are also expanding nationally – suggests that local manufacturers could benefit from improving demand trends,” he said.
Dun & Bradstreet findings
Dun & Bradstreet’s survey of 10,000 businesses in 32 economies around the world produced a 12.9% decline from the previous quarter in the Global Business Optimism index, reflecting concerns about economic growth, geopolitical risks and uncertain trade policies.
The survey was conducted in November before the new administration took office in the U.S.
The firm said, however, that most economies are more optimistic than they were in the first quarter of 2024, suggesting the decline reflects a correction from elevated optimism a year ago rather than a bleak outlook now.
“Survey respondents have a guarded outlook for the quarter ahead due to the evolving economic and political landscape that may impact how the world does business,” Neeraj Sahai, president of Dun & Bradstreet International, said in a news release.
“Optimism levels for supply chain risks vary across business size with large businesses indicating increased optimism and resilience by leveraging their economies of scale and reliance on alternative sourcing,” he said.