PPC Says 2007 Shows Recovery in Carton Shipments

ALEXANDRIA, Va.—The Paperboard Packaging Council (PPC) released results on folding carton shipments for the first half of 2007. Shipments this year are down from the first half of 2006, according to the PPC, but only slightly at minus 0.85 percent on dollar volume and minus 1.94 percent on tonnage.

The outlook for 2007 could be brighter after a slow start to the year. Year-to-date shipments have slowly but steadily improved over a soft fourth quarter 2006. Inventories have risen in June by 18.2 percent compared to May levels, which appears to indicate that the third quarter will follow the traditional pattern of being the year’s best quarter for volume.

Notes elsewhere on economic trends point to a continuing strong economy. According to the Institute of Supply Management, the “PMI” or Purchasing Managers’ Index registered 56 in June and has been trending upward for the past five months. ISM also reports that new orders and production is up, while employment is growing at a slower pace and inventories remain low. The Federal Reserve reports that industrial production and capacity utilization are up, with consumer goods up 1.5 percent year-over-year for June.

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 folding carton converters, and represent a significant portion of the folding carton market. PPC publishes a press release on its data program on a quarterly schedule. PPC’s annual Trends Series: 2007 Industry Outlook and Market Data Report is expected to be published in September.