The estimated dollar value of nondurable goods shipments fell 0.3% between Jan. and Feb. 01. New nondurable orders also fell by 0.3%. With the Feb. loss, shipments values have now declined for three consecutive months and are only 0.1% (before adjusting for inflation) above the year-ago level. However, all is not doom-and-gloom for converting-related manufacturing. The dollar value of consumer staples shipped in Feb. was up 0.3% from Jan., following a sharp decline the prior month. Food products shipped rose 1.3% (by dollar value) in Feb. after declining by 0.7% in Jan. All food categories saw increases in shipment values between Jan. and Feb.: Beverages (+5.7%), dairy products (+2.0%), and meat (+0.5%). And shipments of drugs/soaps/toiletries increased 1.6% over the month after plunging 1.9% in Jan.

Our exclusive packaged goods price index, developed by Converting to reflect price pressures faced by manufacturers in the industry, declined by 0.1% between Jan. and Feb., after rising 0.2% during Jan. Average prices for 7 of the 16 components that make up the composite PGPI measure decreased during Feb. 01, 8 components increased and household flatware showed no change. Price indexes for all but three of the PGPI's product groups were higher this Feb. than during Feb. of 00. However, relatively sharp over-the-year price increases have been recorded for household flatware (+6.3%), floor coverings (+4.2%), and alcoholic beverages (+3.6%). Slower U.S. economic growth and more stable energy costs should cause inflation in packaged consumer goods to ease over the next six months.

* Denotes forecast Source: Purchasing magazine