Board Converting News, July 18, 2022

decreases occurred in professional and business ser- vices and in manufacturing while openings continued to increase in retail trade and leisure and hospitality. Hires and separations were largely unchanged. The strength of the labor market was confirmed by the June employment situation, which showed the U.S. econ- omy added 372,000 jobs in June, and unemployment re- mained stable at 3.6 percent. Shipments and new orders for manufactured durable goods remained strong in May (at +1.2 percent and +0.7 percent, respectively). Despite weaker consumer spend- ing, businesses continue to rebuild inventories. The June ISM Manufacturing PMI contracted to 53 per- cent from 56.1 percent in May, indicating that the expan- sion continues but at a slower pace. New orders dropped 5.9 percentage points to 49.2 percent, signaling that the inventory rebuilding may have run its course. The Semiconductor Industry Association released the latest World Semiconductor Trade Statistics monthly glob- al semiconductor sales numbers for May last Tuesday. While year-over-year monthly sales remained strong in May at 18 percent, they have decelerated throughout the year, indicating the semiconductor market is moving into a cyclical downturn. The question is to what degree will the macroeconomic headwinds described above weaken chip demand? NAM: Consumer Spending (CONT’D FROM PAGE 6)

Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month March 2022

Year

Actual

Percent Change Avg Week Percent Change

2022 2021

37.675 37.992

-0.8

8.190 8.259

-0.8

Industry Total

Year-to Date

March 2022

Year

Actual

Percent Change Avg Week Percent Change

2022 2021

102.648 102.938

-0.3

8.019 8.170

-1.8

Industry Total

Containerboard Consumption (Thousands of Tons)

Year

Month

Percent Change Year-to-Date Percent Change

2022 2021

3.1027 3.0967

0.2

8.4866 8.4625

0.3

Container Board Inventory - Corrugator Plants (Thousands of Tons)

Corrugator Plants Only

Date

Percent Change Weeks of Supply

Percent Change

Mar. Feb.

2.2693 2.3081

-1.7

3.4 3.5

-2.9

Shipping Days

Year

Month

Year-to-Date

2022 2021

23 23

64 63

SOURCE: Fibre Box Association

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July 18, 2022

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