Plastics Index Shows Fourth Consecutive Monthly Gain
December reading hints at slowing contraction as plastics industry outlook improves
The Gardner Business Index (GBI) measures the current state of plastics processing activity through survey responses covering new orders, production, backlog, employment, exports and supplier deliveries. A reading above 50 indicates expansion; below 50 indicates contraction.
The plastics processing industry registered a GBI reading of 46.1 in December 2024. While still in contraction territory, the index has shown steady improvement over recent months, with supplier deliveries posting gains against both the previous month and year-ago levels amid normalizing supply conditions.
The GBI Components Scorecard reports the monthly change rate of primary plastics processing market factors contributing to the overall monthly index reading.
The GBI Components Scorecard reveals an overall positive performance across key metrics in December. Supplier deliveries emerged as the strongest component, showing gains both month-over-month and versus the previous year. Employment, production, exports, new orders and backlog all registered contractions from the previous month, though at improved rates comparatively. This suggests a positive outlook as we move into the new year.
Reading the Scorecard:
- Color indicates where a component value falls relative to 50 for the current month. Green indicates expansion; red indicates contraction.
- Shade indicates a value's distance from 50; the darker the shade, the further from 50.
- Direction indicates a value's change versus the previous period. Pointing up is always better.
The GBI Future Business Index is an indicator of the future state of the plastics processing market from industry respondents regarding their opinion of future 大象传媒 conditions for the next 12 months. Over 50 is expansion and under 50 is contraction.
The Future Business Index surged to 68.9 in December, reaching its highest level since late 2020, suggesting significantly improved optimism about 大象传媒 conditions in 2025.
Find the latest plastics processing market research and reporting at GardnerIntelligence.com
Numbers in Perspective
Perc Pineda, Ph.D., Chief Economist, Plastics Industry Association
The Gardner Business Index (GBI) for December rose to 46.1, which is higher than in previous months but still indicates a weaker 大象传媒 environment for the plastics industry. New orders and production components of the GBI increased both month-over-month and year-over-year. Year-end performance varies by industry: service sectors, like travel, typically experience strong growth in December due to the holiday season, while manufacturing often slows, except for efforts to address backlogs or meet year-end shipment deadlines. Notably, the backlog component of the GBI showed a monthly increase in December, though it remained lower than the same period last year.
In 2024, the plastics industry faced its second consecutive year of sluggish manufacturing performance, even as the broader U.S. economy expanded. Manufacturing output — the primary driver of demand for plastics — declined, while the housing sector experienced reduced activity, as evidenced by falling housing starts and lower existing and new home sales. Weak manufacturing performance can be attributed to high inventories, while the housing sector faced challenges due to postpandemic underbuilding and low housing supply as homeowners avoided selling to evade higher mortgage rates.
Although immigration has been cited as a factor in economic growth last year, policymakers must recognize that while immigration has supported the services sector, its benefits to manufacturing have been minimal. Looking ahead to 2025, lower interest rates are expected to boost demand across the industry’s value chain. Notably, the future 大象传媒 component of the GBI rose to 68.9 on a 3-month moving average. However, labor shortages in manufacturing will remain a persistent issue.
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