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Numbers in Perspective

By Perc Pineda, PLASTICS

The Gardner Business Index (GBI) on plastics processing is declining overall, but pockets of growth in the manufacturing sub-index of the GBI (one of six sub-indices tracked) remain despite a cooling economy. The upticks in GBI’s manufacturing sub-index in October and November are in sync with total manufacturing activity in the U.S. Following declines in May and June, the U.S. Industrial Production Index of manufacturing increased from July through October. A pullback in energy prices partly explains the uptick in manufacturing.

Perc Pineda

Rising energy prices weighed on global manufacturing in 2022. Global energy prices, however, based on the Global Price Index of energy, began decreasing in September. That index decreased by 31% in October from this year’s peak in August. In the U.S., the Producer Price Index of final energy demand was 11.2% lower in October from its peak in June. However, the pullback in energy prices is not a start of a downward trend — energy demand and supply dynamics continue to evolve.

Personal consumption of goods increased for three consecutive months ending in October. Based on employment data, U.S. manufacturing activity is holding steady thus far. Durable and nondurable goods manufacturing added 11,000 and 3000 jobs, respectively, in November. 

While employment in plastics and rubber goods manufacturing decreased marginally by 0.4% in November, it increased by 2.8% from a year earlier. The stable employment in plastics and rubber products manufacturing is consistent with stable plastics demand, which was up 3.3% in October from a year earlier.

Looking ahead, internal and external factors will continue to affect the economy’s level of manufacturing activity. Global supply-chain issues continue to weigh on U.S. manufacturing capacity.

ABOUT THE AUTHOR: Perc Pineda, PhD, chief economist of the Plastics Industry Association (PLASTICS), is an industry thought leader and PLASTICS’ primary expert and spokesperson on the U.S. and global economy, industry research, statistics, trends and forecasts. He produces PLASTICS’ two annual flagship publications — Size & Impact and Global Trends — and trademarked the Global Plastics Ranking. Read his views and insights on the economy and the plastics industry at .