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Sharp Drop in June NAPL Printing Business Index Points To Slowdown in Business Activity Despite Current Sales Growth

Wednesday, July 26, 2006

Press release from the issuing company

PARAMUS, N.J., JULY 25, 2006 – A prospective slowing in printing industry business activity is reflected in the June 2006 NAPL Printing Business Index (PBI), the trade association's broadest measure of print activity, which fell to 52.8 in June from 55.6 in May and 59.9 in March, its lowest level in three years. (A PBI reading above 50.0 means more printers report activity is picking up than report activity is slowing down; a reading below 50.0 means the opposite.) Despite brisk growth in current sales, the PBI performance underscores the likelihood of major challenges ahead for graphic communications companies. “Sales performance may suggest that business is good and there's little to worry about. Unfortunately, that's not the case,” notes Joseph V. Vincenzino, NAPL senior economist. “Going forward, the economy will slow and growing and even maintaining profits will get a lot more difficult. Companies must be prepared.” The PBI combines input from NAPL's Printing Business Panel about work-on-hand, current business conditions, expected business conditions (confidence), hiring plans, profitability, and other key indicators into a single measure of activity. The NAPL Printing Business Panel is a representative group of more than 300 printers that the Association surveys monthly on a range of key printing issues. Since the same companies are surveyed every time, data are strictly comparable from period to period. The economic analysis comes from NAPL's Printing Economic Research Center (PERC) which produces research and publications sponsored by Heidelberg, Kennesaw, Ga.




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