Economic Outlook - May 2009

Although overall economic activity in the United States contracted during the past month, scattered signs of a slowing in the pace of decline are appearing. Nonetheless, we estimate another nine to 13 months of recession are likely. The dollar’s value faces heightened risk from the U.S. government’s fiscal and monetary policies. Substantially higher inflation, interest rates and commodity prices are distinct possibilities when global activity rebounds. However, domestic forest products manufacturers could leverage a weaker dollar into increased market share.

The graph below gives a snapshot of how the wood products and paper industries performed in March 2009, according to the Institute for Supply Management. Notice that more indicators stayed the same in March instead of dropping further.

Read more about the Forest2Market Economic Outlook.