A monthly survey of Northeast Florida manufacturers by the University of North Florida’s Local Economic Indicators Project showed conditions improving and optimism about 2026, but businesses are not hiring more workers.
A Purchasing Managers’ Index derived from the survey registered 52.4 in January, signaling modest expansion.
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.
The survey’s Business Activity Outlook Index registered 55 in January, suggesting Jacksonville area manufacturers are expecting conditions to improve over the next 12 months.
However, the survey’s Employment Index was at 48, meaning more companies were reducing headcount than adding jobs.
“Several underlying indicators point to steady demand: output and new orders are expanding, export orders are improving, and backlogs are building,” UNF economist Albert Loh said in his monthly report on the survey.
“Firms 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,” he said.
The outlook index “suggests confidence is positive but not exuberant – manufacturers generally see growth ahead, but the outlook is measured rather than booming. It points to
cautious optimism that demand and operations will strengthen as the year unfolds,” Loh said.
The caution is reflected in the employment gauge indicating contraction in manufacturing labor.
“Some may rely more on overtime, temporary workers, or productivity improvements instead of expanding payrolls,” Loh said.
Another cautionary trend is increasing input and output prices, which are squeezing profit margins, he said.
But the overall trends from the January survey indicate positive conditions in the manufacturing sector in Northeast Florida.
“These signals suggest Jacksonville’s economy has some forward momentum and could benefit if demand continues to firm up,” Loh said.