Q4 Paper Outlook — Cuts in Capacity

"It is very likely that it will be a somewhat muted recovery. It will stop well short of the growth that we enjoyed in the mid-1996 to mid-2000 years. The idea that we were going to have a robust, second half recovery is obviously not going to happen," he says.

Paparozzi does note that he has begun to see printer confidence rise in NAPL's printing business index. "In our surveys, we are starting to see that printer confidence is beginning to rise. Our printing business index has leveled off after it peaked last August. However, it is important to recognize that the rising optimism is based on the expectation that the economy is going to respond to the tax and interest rate cuts by year's end," Paparozzi reveals.