Many North American plastics end markets may see a short term slump, but then resume their long-term upward trend in six to nine months, according to Plastics News Economics Editor Bill Wood.
A big factor impacting his outlook is the slow residential housing sector, which is being hurt by higher interest rates.
“Since the housing bubble burst [in 2009], over the longer term residential construction is going to be up. But right now it is in a downward cyclical phase,” Wood said in the June Numbers That Matter Live, watch below.
“That’s having an impact on the plastics sector, and that was the idea [behind the Fed raising interest rates to ease inflation],” he said.
Wood is sticking with his previous forecasts and not predicting a recession. He also gave forecasts for key plastics end markets including automotive, household products, electronics, packaging and medical.
Over the long term, U.S. processors will benefit from trends to reshore manufacturing, and Wood noted that spending on construction by the manufacturing sector remains very strong.
Numbers That Matter Live is offered exclusively to paid subscribers of Plastics News. The next livestream is scheduled for July 25.