Economic Outlook - April 2009

Economic Outlook - April 2009
Mounting problems with Europe’s banks, slowing international trade and rising unemployment in most countries indicate the end of the ongoing global economic downturn is not yet in sight. But greater thrift and a reduction in the abuse of credit by the private sector are just two of the positive changes we see resulting from this challenging time. With housing at historically high affordability levels, that market could experience a rebound by year’s end. Oil prices are expected to trend higher as OPEC’s production cuts gradually offset diminished demand.

In February, the wood and paper products industries continued to struggle, with overall activity, new orders, production and employment all losing ground (see chart). A recovery of both the housing market and the global economy will have to begin before the numbers reverse trend. The economic outlook remains bleak.

wood and paper products industry economic outlook summary - april 2009

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