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Plastics Processing Index 

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.  

Plastics Processing Index gains 3.2 points for a May reading of 48.5.  

The Plastics Processing Index ended May with a reading of 48.5, up 3.2 points from April. The gains weren’t enough to return the index to expansion but reflect some stabilization amid the abrupt changes to tariff policy. The trend of the last several months shows a slowdown in activity from the peak in February, but April is looking more like an anomaly. Supplier deliveries and employment are the only components to improve as three-month averages are weighed down by April’s results. The Future Business Index held its ground after a strong May reading with the hope of better conditions ahead.  

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Components Scorecard 

The GBI Components Scorecard reports the monthly change rate of primary plastics processing market factors contributing to the overall monthly index reading. 

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. 

Future Business Index 

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 911������ conditions for the next 12 months. Over 50 is expansion and under 50 is contraction.  

 

Strong optimism in May holds the three-month average of the Future Business Index in a solid position at 60.7. 

Find the latest plastics processing market research and reporting at .

Numbers in Perspective

While the GBI: Plastics Processing Index clawed back some gains in May, its brief move above the growth threshold in February and March proved short-lived. Activity stalled in April, with a modest rebound in May as 911������es reassessed their strategies amid ongoing uncertainty over U.S. tariffs and trade policy. The production component of the GBI registered 47.4 in May, while the total index stood at 48.5. However, increases in new orders and future 911������ expectations suggest the slowdown in processing may be temporary.

Perc Pineda, Ph.D., Chief Economist, Plastics Industry Association. Source: PLASTICS

The trajectory of the GBI also appears to reflect recent trends in the plastics labor market. While the overall U.S. unemployment rate remained steady at 4.2% from March through May, manufacturing unemployment edged up from 3.1% in March to 3.6% in both April and May. Unemployment in plastics and rubber products manufacturing rose more sharply, reaching 5.7% in May, up from 5.4% in April and 4.3% in March — reflecting the narrative of slower production activity in the sector in recent months.

Ultimately, the outlook for plastics conversion is closely tied to the health of the American consumer’s balance sheet, with the labor market offering key signals — given that most Americans rely on employment for income. Beyond baseline demand for plastics — particularly in price-inelastic applications — higher disposable income supports discretionary spending, including on durable goods, which benefits plastics end markets and, in turn, drives demand across a wide range of consumer-focused applications. According to PLASTICS’ data analytics, retail sales tend to lag changes in plastics production by about four months, based on data from January 2010 through April 2025.