First Half 2006 Showing Momentum for Paperboard Shipments

ALEXANDRIA, VA—The Paperboard Packaging Council (PPC) announced that folding carton shipments reached an estimated $4.7 billion and 2.9 million tons in the first half of 2006. When compared with the first quarter of 2005, shipments in dollars increased by 4.2 percent, while tons increased by 4.7 percent.

The sharp increase beginning in March reflects the typically strong production rates needed to supply consumer package goods manufacturers with packaging for their increased sales during the holiday season later in the year. The growth rate slow later in the year, but overall, 2006 is expected to be a solid year. This is reflected in RISI's very positive forecast for 2006 in PPC's TRENDS 2006 Report.

Folding carton shipments are a leading indicator of the consumer nondurables market. A strong first half suggests that the economy will stay strong through the end of the year. The PMI index remains well over 50 and the Federal Reserve is reporting a 5.7 percent increase year-over-year in industrial production for the first half of 2006. Both are in line with the strong carton shipments we are seeing.

Results cited are based on data from PPC's Market Flash program, which tracks folding carton shipments, orders, and inventory flow monthly. Participants in this program are PPC members, and represent a significant portion of the folding carton market. For more information on the Market Flash program, contact Melissa Teates, director, industry information & research at mteates@ppcnet.org.