PT Online

Extrusion Business Index

Source: Mountaintop Economics & Research, Inc
Last updated: May 2008

Latest Month	Previous Month	Year Ago	YTD % Change	Annual % Change
				2006	2007	2008
163.4	158.1	191.9	-8.9	-0.7	-1.3	2.0

The Extrusion Business Index (1990=100) measures market demand for extruded plastics products. This is our largest index in terms of the total pounds of resins it represents, and it is a leading indicator of the demand for extrusion machinery and auxiliary equipment.

The Extrusion Business Index dropped by 15% in the latest month when compared with a year ago. This followed a 7% decline during the previous month.

When compared with the previous year, this Index decreased 9% the first quarter of 2008 after a rise of 2% in the fourth quarter of 2007.

The U.S. economy will experience below-average growth during the next few months. This will curb demand for many extruded products during this time, especially residential building materials. The U.S. manufacturing sector will start to gain momentum in the second half of 2008.

The cyclical low-point in the chart for the Extrusion Business Index will occur in the first half of 2008. The Index will start to post consistent monthly gains later this year.

After a decline of 1% in 2007, total output of extruded products is forecast to expand 2% in 2008. All of the growth will occur in the second half of 2008.