Processing Activity Nears Expansion Level
Plastics processing kept pushing along in April, landing less than one point shy of expansion.
The Gardner Business Index (GBI) for Plastics Processing reached 49.2 in April, up 0.6 points from March’s reading. 48.6. The index is based on survey responses from subscribers to Plastics Technology. Indices above 50 signal growth; below 50, contraction.
Slowed contraction primarily in new orders and production drove slowed contraction in April’s index overall. Contraction in backlog slowed as well, but backlog remained more contracted than other driving components.
![Plastics Processing Rebounding](https://d2n4wb9orp1vta.cloudfront.net/cms/brand/pt/2024-pt/0624ptgbi1.jpg;maxWidth=720)
FIG 1 Contraction for plastics processing overall and custom processing in particular slowed in April.
Employment and export contraction were slightly accelerated and level, respectively. Supplier deliveries lengthened a little faster again, representing another encouraging sign that business is picking up. Optimism about future business has been positive and steady for about three months now.
![Plastics Processing Rebounding](https://d2n4wb9orp1vta.cloudfront.net/cms/brand/pt/2024-pt/0624ptgbi2.jpg;maxWidth=720)
FIG 2 New orders and production lead slowed contraction in April.
Overall business activity for custom plastics processing continued to closely parallel total plastics processing.
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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