Q4 Paper Outlook — On-the-Cheap Sheets

Recovery On the Way

"We don't expect to see the third, and final, phase of recovery until the middle of next year at the earliest. That will bring restoration of some pricing power and profitability," the economist continues. "It is really the hallmark of full recovery from recession."

Paper manufacturers and other industry suppliers bear watching, since they are not going to want to wait that long to push through their own price increases, Paparozzi adds. "It's been a long time since any company in the manufacturing sector had had pricing power. They all have ground that they want to make up. As this recovery strengthens toward the end of this year and into 2004, we could see paper, ink and other major industry suppliers try to push through price increases."