The Perc Report is released on the first business day of each month. It includes monthly highlights on the most recent economic and plastics industry data along with recent activities, articles, and blogs you may have missed.
The USMCA Free Trade Agreement Renegotiation
The U.S. free trade agreement with Mexico and Canada is being renegotiated, and the U.S. Trade Representative (USTR) needs your input. Both countries are the largest export markets for the U.S. plastics industry.
The Industrial Production Index of the United States rose 0.1% in August following a 0.4% decline in July. On a year-over-year basis, the index increased 0.9%.
Sales revenue growth expectations for the next twelve months increased to 4.6% in September, according to the Federal Reserve Bank of Atlanta.
Real personal disposable income rose 0.1% in August from July and was 1.9% higher compared to August of last year.
Real personal consumption expenditures on food and beverages for off-premises consumption grew 1.5% year over year in the second quarter, representing a $17.5 billion increase from a year earlier.
New single-family home sales increased 20.5% in August from the previous month and were 15.4% higher than in August 2024. The median sales price of new homes sold was $413,500, compared with $395,100 in July.
Plastics Demand Estimate
U.S. plastics demand was estimated at $23.3 billion in July, up 4.5% from the revised June estimate and 0.6% higher than July last year.
To access the latest Plastics Demand Estimate, click here.
Plastics Industry Data
The Industrial Production Index for plastic products manufacturing declined for the fifth consecutive month in August, falling 0.2% from July and 2.7% year over year.
The value added of plastic and rubber products manufacturing rose from $96.8 billion in the first quarter to $100.1 billion in the second quarter, a 3.4% quarterly increase.
U.S. industrial capacity for plastic materials and resin manufacturing edged up 0.1% in August and was 2.3% higher year over year.
The capacity utilization rate in plastic materials and resin manufacturing increased for the second consecutive month, rising to 82.9% in July from 81.5% in June.
The Producer Price Index (PPI) for plastic bottle manufacturing continued to post modest gains, rising from a 1.4% year-over-year increase in February to a 1.7% increase in August.
Access the most up-to-date data on the plastics industry
Recent Producer Price Index (PPI) data for polyethylene terephthalate (PET) products show a mix of volatility and downward pressure through mid-2025, even as some categories saw sharp month-to-month swings. With new tariffs now in place on PET imports, these trends highlight the pressure domestic manufacturers may face as costs shift upward while global supply chains adjust.
The U.S.-Japan Agreement exempted plastics products under HTS subheadings 3917.21.00, 3917.22.00, 3917.23.00, 3917.29.00, 3917.31.00, 3917.33.00, 3917.39.00, 3917.40.00, 3926.90.45, 3926.90.94, 3926.90.96, and 3926.90.99. Japanese products classified under these codes qualify for exemption from additional duties when used as civil aircraft and related engines, parts, subassemblies, and flight simulators.
