Index Still Searching for Growth
But the good news is that June’s results were nearly a point above May’s.
The Gardner Business Index (GBI): Plastics Processing closed June at 46, roughly a point above May’s 45.1 results. The index is based on survey responses from subscribers to Plastics Technology. Indices above 50 signal growth; below 50, contraction.
FIG 1 Plastics processing activity contracted in June, but at slower rates than May for both total plastics processing and custom processing.
The exports subindex has stabilized; it’s been about the same for four months straight. Backlog, new orders and production all contracted again in June, and at slightly faster rates than May. Employment and supplier deliveries slipped ever-so-slightly in June.
As part of our subscriber survey, we ask our audience to share their sentiments about future business conditions. While not part of the GBI calculation, June’s responses revealed that more processors believe business will be better for them over the next 12 months compared to those who indicated otherwise.
FIG 2 Employment and supplier deliveries dipped their toes on the other side of flat in June. It is not the first time this year for employment, but supplier deliveries have not contracted one bit since February 2020, thanks to the pandemic and supply chain chaos.
Overall business activity for custom plastics processing contracted again in June, but more slowly, gaining a full 3 points vs. May, putting it back in line with April of this year.
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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