Plastics Processing Activity Continues to Contract
September’s survey results mark a third month of a very similar GBI.
The Gardner Business Index (GBI) for plastics processing closed September at 44, about the same as August’s 2023 low of 44.1. The index is based on survey responses from subscribers to Plastics Technology. Indices above 50 signal growth; below 50, contraction.
All components contracted faster again in September, with the exception of supplier deliveries, which slowed contraction, inching back to flat (50) for the month.
The slowing new order contraction observed in August did not carry over into September. Rather, new orders joined four other components, production, exports, employment and backlog, in contracting faster in September.
FIG 1 Plastics processing activity contracted in September at about the same rate as August, while custom processors marked a third straight month of GBI decline.
Employment has contracted at a particularly accelerated rate, contributing to this month’s biggest cumulative component drop since June. Absence of pressure on employment from growing orders and production may be a silver lining short-term with just about everything costing more.
Overall business activity for custom plastics processing contracted faster, dropping not quite one point and landing over three points lower than overall plastics processing in September.
FIG 2 Supplier deliveries contracted slower in September while employment saw continued accelerated contraction.
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 earned a bachelor’s degree in psychology from Purdue University and an 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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