Jacksonville’s manufacturing sector ends May flat-footed, according to UNF survey

Manufacturing sector in Jacksonville was flat in May. Image via AP.

The manufacturing sector remained relatively stable in May in the Jacksonville area, though there was some contraction in some key economic indicators.

The latest Jacksonville Economic Monitoring Survey conducted each month by the University of North Florida (UNF) showed a relatively solid snapshot of manufacturing. But there were some areas that indicated a slight slowdown in May.

The Purchase Managers’ Index (PMI) scored a 49 in May, just off April’s figure of 50. UNF Coggin College of Business Interim Dean Albert Loh oversees the monthly manufacturing monitoring project and wrote in the report on the survey that the scene is relatively flat in the Jacksonville area heading into Summer.

“The stable production and employment levels contributed positively to the PMI, despite ongoing headcount reductions. Inputs such as supplier deliveries and inventories remained stable or slightly lower, while prices continued to rise but at a slower rate, reflecting easing but persistent inflationary pressures,” the survey findings concluded.

The survey for the First Coast area tabulates several factors to establish a scale of manufacturing business trends. Business output, employment, orders, inventory, purchases and prices are all measured in the study.

Production output in the Jacksonville area was one of the bright spots in the May analysis. Output scored a 52, though that was slightly down from April’s figure of 54.

Still, the UNF study found output levels are encouraging, while “signaling an expansion in production activities in the local economy. This indicates that a relative majority of companies participating in the Jacksonville Economic Monitoring Survey reported an increase in production compared to the previous month. This expansion could lead to increased employment opportunities and higher business revenues.”

Meanwhile, new manufacturing orders in the Jacksonville area fell slightly. The survey said new orders fell from a rating of 48 in April to 46 in May.

“This means that a relative majority of manufacturers responding to the JEMS reported a decrease in the number of new orders compared to the previous month. This contraction could reflect declining demand in the local economy,” the report said.

While Jacksonville’s manufacturing scene remains flat, the report said the First Coast manufacturing sector is performing slightly better than the national picture.

“The national report highlighted that U.S. manufacturing activity remained in contraction after brief growth in March, with softening demand, stable output, and accommodating inputs. Specifically, new orders and backlogs regressed further into contraction, while new export orders saw marginal expansion,” the UNF report said.

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Editor’s note: Drew Dixon writes development projects and website material for the Coggin College of Business but is not involved with the UNF Jacksonville Economic Monitoring Survey.