Plastics Processing Contraction Continues
Contraction dominated the GBI index for overall plastics processing activity and almost all components, collectively suggesting a slowdown.
The Gardner Business Index (GBI): Plastics Processing closed May at 45.1, down a full two points from April’s index. The index is based on survey responses from subscribers to Plastics Technology. Indices above 50 signal growth; below 50, contraction.
Processing activity contracted again in May for both total plastics processing and custom processing.
Production, new orders, and backlogs contracted faster in May, while exports held their own, contracting in May at about the same rate as April. Employment and supplier deliveries expanded and lengthened, respectively, to lesser degrees in May. Indices for both components landed on the cusp of flat, which means about as many people saw activity for the component going up as saw it going down.
Employment and supplier deliveries activity ended May nearly flat while other components contracted, generally faster than in April.
Overall business activity for custom plastics processing contracted again in May, down 2.5 points from April and continuing a year-long trend of contracting faster than overall plastic processing.
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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