Q4 Paper Outlook — On-the-Cheap Sheets

"The industry will get an extra boost from advertising for the Olympics and the presidential elections," the PIA economist points out. "It also appears that direct mail is getting a boost from some shift away from telemarketing and Internet advertising."

As for the paper market, Davis doesn't expect to see any significant movement in pricing. "There is still a lot of slack in both printing and paper markets due to over-capacity," he asserts.