Behind The Numbers

-- Converting Magazine, 11/1/2000

Converting end-markets posted very strong numbers so far in 00. Both the value of shipments from manufacturers of consumer staples and retail sales of these products were as strong in late summer 2000 as in the early months of the year, following a very good 1999. With the Fed's higher interest rates finally starting to slow U.S. economic growth, it's anticipated that most sectors will grow more slowly through the first half of 01. Consequently, the annualized growth rates we'll see for shipments and sales will moderate, but remain at generally solid levels. Commerce estimates that the value of all consumer staples shipped by U.S. manufacturers during August 00 was up 1.0% from July, 7.8% greater than August 99. So far the value of consumer staples shipped is running 9.5% ahead of a year ago, while orders growth was at 9.3%. Although retail store sales growth will slow over the rest of 00 and into the first half of next year, continued consumer confidence should keep rates of increase at between two and three times inflation.

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