Plastics Processing Business Index Contracts Further
All components dip as index hits low point of 2023.
The Gardner Business Index (GBI): Plastics Processing closed July at 44.3, the lowest in 2023. The index is based on survey responses from subscribers to Plastics Technology. Indices above 50 signal growth; below 50, contraction.
All six components contracted in July, marking the first time that’s happened since February 2020. Backlog, new orders and production contracted in tightly parallel form, which is not surprising given the inherent relationships between those metrics.
FIG 1 GBI: Plastics Processing activity contracted in July for both total plastics processing and custom processing in particular.
Exports added another month of “same,” remaining the only component contracting for months without falling victim to accelerating rates (or enjoying slowed rates).
GBI’s “future business” metric is a sentiment question that solicits a 12-month business outlook. It is not part of the GBI calculation. In July, it showed an uptick, suggesting more processors have “better” than “worse” business expectations for the next 12 months.
Overall business activity for custom plastics processing contracted faster again in July, dropping just over 2 points.
FIG 2 Backlogs, new orders, and production contracted in tightly parallel form in July.
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.
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