The overall U.S. economy finds itself near the end of 2024 in pretty decent shape. The U.S. Federal Reserve has started to lower key interest rates, Americans seem to be ready to spend money on holiday items and the labor market is "as good as it's been in my lifetime," Plastics News Economics Editor Bill Wood says.
But don't celebrate yet.
The residential construction and automotive markets are still sluggish for one, he said in his most recent Numbers Matter Shorts video.
"Manufacturing is still not on its feet," he said. "It's underperforming and one of the weaker sections, sadly, is the plastics industry."
In the video, Bill notes that while the Fed has lowered interest rates, the 10-year treasury note — which the general public more because it's used to help set rates for mortgages, car loans and credit cards — has been on the rise. That's because investors in the market believe the incoming Donald Trump administration will push forward policy changes that would push inflation back up, leading the Fed to revert to higher rates.
Trump and his supporters may say otherwise, Bill said, "but the market is positioning for higher inflation."
"How it works out is still too early to call," he added. But, "it's not over, so keep going."