Plastics Technology

OCT 2018

Plastics Technology - Dedicated to improving Plastics Processing.

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1/13 7/13 1/14 7/14 1/15 7/15 1/16 7/16 1/17 7/17 1/18 7/18 40 45 50 55 60 52.7 Michael Guckes is the chief econo- mist for Gardner Intelligence, a division of Gardner Business Media, Cincinnati. He has performed economic analysis, modeling, and forecasting work for nearly 20 years among a wide range of industries. He received his BA in political science and economics from Kenyon College and his MBA from Ohio State University. Contact: (513) 527-8800; mguckes@gardnerweb.com. Learn more about the Plastics Processing Index at gardnerintelligence.com. STAY AHEAD OF THE CURVE WITH GARDNER INTELLIGENCE Visit the blog at: gardnerintelligence.com or email mguckes@gardnerweb.com The Gardner Business Index (GBI) for plastics processing continued its slowing growth trend for yet another month in August. The latest reading of 52.7 was down 2.9% compared with August 2017. (Index values over 50 indicate expansion; values below 50 indicate con- traction; an Index of 50 = no change.) Five of the six components of the index moved lower, except for supplier deliveries, which hit a new all-time high. The latest reading was driven higher by supplier deliveries and production. New orders, employment, backlogs and exports all pulled the index lower. Backlogs contracted for the second time in the last three months as new orders growth slowed faster than production growth. As Gardner Intelligence has indicated in past months, strength in supplier deliveries and employment is likely to signal maturing of the growth phase of the business cycle. Gardner Intelligence believes that current employment readings do not represent a lack of desire to hire new workers, but rather illustrate the problem with a simple lack of supply of available labor, thereby suppressing Gardner's recent employment (hiring) readings. The Plastics Processing Index is calculated by Gardner Intelligence based on monthly survey responses from subscribers to Plastics Technology magazine. Gardner Intelligence is a division of Gardner Business Media, publisher of this magazine. August's index of 52.7 shows processor growth abating. Processors' Growth Is Slowing Gardner Business Index: Plastics Processing Supplier Deliveries Extend Expansion Streak The Plastics Processing Index extended its slowing growth trend in August as five of the six components of the index moved lower, except for supplier deliveries, which hit a new all- time high. Supplier deliveries continue to signal accelerating growth. August marked the third consecutive month of supplier delivery readings at or above 62. Prior to 2018, supplier deliveries' highest reading was 60.8, during the fourth quarter of 2017. FIG 1 FIG 2 By Michael Guckes Chief Economist 1/13 7/13 1/14 7/14 1/15 7/15 1/16 7/16 1/17 7/17 1/18 7/18 45 50 55 60 65 @plastechmag 65 Plastics Technology YO U R B U S I N E S S G A RDNER BUSINE S S INDE X : PL A S T IC S PRO CE S SING

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