Drew Dixon
The manufacturing industry along Florida’s First Coast contracted in the majority of the 12 key sectors in August compared to July, winding up with the third straight month of contraction.
The monthly Jacksonville Economic Monitoring Survey provided by the University of North Florida (UNF) Coggin College of Business showed there were seven key elements among manufacturers that contracted last month and another two that were unchanged. Only three sectors showed signs of expansion in August.
“The local economy is experiencing contraction,” concluded Albert Loh, the interim dean of the business school at UNF who oversees the manufacturing report for the Jacksonville area. “Businesses are facing challenges such as reduced new orders, slower supplier deliveries, and lower production levels, which are putting pressure on growth.”
New orders for manufacturers on the First Coast showed significant contraction. New orders dropped from a monthly index figure of 49 in July to 42 in August.
Loh said the contraction of new orders “suggests that the local economy is experiencing a contraction in new business activity.”
Loh acknowledged the contraction in the new order sector is probably the most significant data point.
“New orders are a key indicator of future production and economic growth, as it reflects demand for goods and services. A contraction in new orders could result in lower production levels, job cuts, and reduced investment in the coming months,” Loh said.
Manufacturing output along the First Coast also faltered in August, dropping from an index figure of 45 in July to 43 last month.
“Specifically, this index indicates that a relative majority of companies surveyed in Jacksonville reported a decline in their production levels compared to the previous month,” Loh said in the report.
Other manufacturing sectors experiencing contraction in the Jacksonville area including new export orders, backlogs of work, finished goods inventory, output prices and quality of input purchased.
Employment remained unchanged at North Florida manufacturers in August, along with the 12-month business outlook.
