Print Sales Remain Below 2000 Levels

Printing sales remained stagnant at the beginning of the fall, -0.4% through Sept. '04, up 1.9% from an unusually weak Aug., reports James Haughey, director of economics, Reed Business Information.

Print employment, down 2,400 for the year, fell 200 in Sept., and capacity continued to decline, permitting capacity utilization in print shops to rise, notes Haughey. But that rate is still too low to set off equipment purchases until at least mid-'05.

"Weak pricing for print products confirms surplus print capacity; printers are recovering higher paper costs but do not appear to be able yet to raise their depressed operating margins." He forecasts print sales to stay flat through year end and to rise 5.4% in '05 to finish next year still 2% below peak sales in spring 2000.

"Most of next year's dollar sales gain will simply cover higher paper prices, but a small gain in printing volume is expected for the first time in four years," reports Haughey. The National Assn. of Printing Leadership's Printing Business Index reached 62.8 in Oct., a record high. For 16 months, the index has stayed above the critical 50.0 mark, indicating more printers report business picking up.