Even though consumers continue to spend money and it looks like the Fed has achieved a soft landing for the U.S. economy, it’s still difficult to predict when plastics markets will see an upswing.
In the October Numbers That Matter Live, PN Economics Editor Bill Wood discussed his outlook for 2025, emphasizing the uncertainty and the unreliability of traditional economic models. Recording below.
“Even though their [the Fed’s] monetary policy is easing, it’s still not at a level that’s going to encourage economic activity in many sectors,” Wood said. “Interestingly, and not in a good way, long-term interest rates have increased since the Fed lowered their Fed funds rate.”
With interest rates still high, that puts a squeeze on consumers, and that makes it tough to forecast any improvement yet in key plastics markets including auto and single-family home sales.
He advised companies to focus on improving competitive advantages, training staff, and considering strategic investments. And despite a potential lag in economic recovery, he anticipates an uptick in remodeling activity, driven by homeowners unlocking equity.
The next Numbers That Matter editorial livestream is scheduled for Tuesday, Nov. 26.