Processing Slips as Summer Simmers
Monthly index suggests slower growth in June for plastics processors overall and contraction for custom firms.
The Gardner Business Index (GBI) for plastics processing showed a slowed rate of expansion again in June, closing the month at 51.9. The index, which is based on monthly surveys of subscribers to Plastics Technology magazine, inched toward 50, which signals “flat,” or essentially no growth.
FIG 1 Plastics processing expansion activity slowed again in June for plastics processors overall, and to just under 50 for custom processors in particular.
Backlogs rebounded to a post-COVID high last June, but this June posted its biggest three-month slowdown since early 2020. New orders and production trended similarly, along with employment, which had seen accelerated growth in the prior few months.
Supplier deliveries are shortening, but are still well outside of the typical range for plastics processing, so not itself a cause for concern. Exports, meantime, continued to contract at a faster rate.
Overall business activity for custom processors slowed more than total processors, closing the month at 49.2, indicating a contraction, or negative growth.
FIG 2 In June, backlogs slowed the most they have in more than a year, and employment ended (or paused) its fast expansion. (3-MMA = three-month moving averages.)
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.
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