Washington D.C.— The Plastics Industry Association (PLASTICS) has released an official analysis of capital expenditures and its impact on the plastics industry, authored by PLASTICS Chief Economist, Dr. Perc Pineda.
Dr. Pineda writes, “Despite weaker household spending and a decline in corporate profits in the first quarter, nonresidential investment spending, which can serve as a reasonable proxy for capital expenditures (CapEx) on a macro scale, has shown resilience with ten consecutive quarters of growth. In the first quarter, nonresidential investment spending expanded by 3.3%, faster than the earlier estimate of 2.9%. Additionally, investment spending on structures, albeit minimal, was revised upward, showing an uptick of 0.4% in contrast to an earlier estimated downtick of 0.1%. Investment spending in intellectual property products also saw a significant revision, increasing from 5.4% to 7.9%. Higher investment spending on technology, including in artificial intelligence (AI), most likely explains the robust growth. Given that CapEx is a leading economic indicator, its growth suggests a cautiously favorable outlook for sectors that include the end markets of the plastics industry.”
Click here to read the full analysis on the PLASTICS blog page.
The Plastics Industry Association (PLASTICS) is the only organization that supports the entire plastics supply chain, including Equipment Suppliers, Material Suppliers, Processors, and Recyclers, representing over one million workers in our $548 billion U.S. industry. PLASTICS advances the priorities of our members who are dedicated to investing in technologies that improve capabilities and advances in recycling and sustainability and providing essential products that allow for the protection and safety of our lives. Since 1937, PLASTICS has been working to make its members, and the seventh largest U.S. manufacturing industry, more globally competitive while supporting circularity through educational initiatives, industry-leading insights and events, convening opportunities and policy advocacy, including the largest plastics trade show in the Americas, NPE2024: The Plastics Show.