Paper Forecast — Calm Seas Ahead

Because the printing industry is so sensitive to changes in the economy, the June and July data are particularly interesting because they may be the first indicators that the Federal Reserve's interest rate hikes are beginning to take effect and that business is slowing.

"Contrary to what the second quarter GDP report and some of the other national indicators contend, all of our data shows that the economy is, indeed, slowing. That would be my first explanation as to why we are seeing prices level off," he says. "Business is slowing in line with what the Federal Reserve has been trying to do; it is just that a lot of national indicators haven't picked up on that yet."