Food Packaging Should Remain Strong

摘要

There are three primary industries that we track that drive packaging demand: food, retail (primarily trash and t-shirt bags), and industrial (primarily shipping materials). In our January report, all three industries looked to be doing well. But things have recently changed. While food packaging should see continued strength—if not growth—retail packaging and institutional packaging seem poised for a contraction. Here's why: Real Disposable Income. April real disposable income was $12.56 billion (seasonally adjusted at an annual rate), an all-time high. Moreover, the data for the fourth quarter of 2015 and the first quarter of 2016 generally was revised higher. In April, real disposable income grew 3.3% compared with one year ago, which was slightly faster than the historical average growth rate. In the first four months of 2016, the month-over-month rate of growth has accelerated from its low of 3% in December 2015. However, the annual rate of growth has remained unchanged at 3.4%.