Plastics Processing Crosses the (Flat) Line

The Gardner Business Index (GBI) for Plastics Processing moved from steadily slowing growth in June (51.9 index) to contraction in July, closing the month at 49. The index is based on survey responses from subscribers to Plastics Technology. Readings above 50 mean growth; below 50, contraction.

FIG 1 Plastics Processing activity contracted in July for both total plastics processing, which includes captive operations, and custom processing.

In July, every component reading dropped. New orders contracted at a relatively fast rate for the first time in two years. Backlogs and production also contracted.

Supplier deliveries are still lengthening at a slowing rate, while exports continue to contract at a faster rate.

FIG 2 New orders contracted considerably in July, while backlog and production read just barely under 50. (3-MMA = three-month moving averages.)

Custom processors saw a steeper decline in business activity in July, closing the month at 46.2, down from 49.2 in May.

EDITOR’S NOTE: Finding reliable and relevant data to help guide your business is always important, but especially so during challenging economic times. For this reason, the GBI Plastics Processing Index serves as a great tool for making data-driven decisions. Thank you to everyone who has previously completed GBI surveys. Your participation helped increased response in 2021-2022, making the GBI better than ever because of your involvement. Thank you for your time and efforts and for trusting us to provide you with the latest industry and business insights both in the past and in the future.

If you are a North American plastics processor and would like to participate in this research, click here to begin the process by subscribing free to Plastics Technology magazine.

ABOUT THE AUTHOR: Jan Schafer is director of market research for Gardner Business Media, parent company of both Plastics Technology magazine and Gardner Intelligence. She has led research and analysis in several industries for over 30 years. She has a BA in psychology from Purdue University and MBA from Indiana University. She credits Procter & Gamble for 15 years of the best business education. Contact: (513) 527-8952; jschafer@gardnerweb.com.