Printing Trends

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19 January 2004 Nr. 0104/0101

 

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Indication of the gross profit margins of paper producers, printers and publishers: November 2003

Comments
  1. The printing and publishing PPI relative to the overall PPI improved in November (see Graph 1). This is an indication that the gross margins of printers and publishers probably have been on an upward trend since July last year (except for a small decline in October).
  • During November the inflation rate of printing and publishing was –0.3% (compared to –0.4% in October).
  • The input costs of printers and publishers showed the following developments in November:
      • The paper input cost of printers and publishers continued its steep upward trend, albeit at a slightly slower pace (see Graph 3).
      • In addition, the equipment input cost of printers and publishers is also estimated to have increased slightly in October (see Graph 2).

Notwithstanding the increase in these input costs, gross margins in printing and publishing still continued their apparent upward trend in November. One might suggest that this is because the erosion of pricing power within this industry is less than in the economy overall.

  1. The estimated gross margins of paper producers remained virtually unchanged in November (see Graph 1).

Note

  • The ratio of the Production Price Index (PPI) for paper & paper products relative to overall PPI is an indication of the profit margin of paper producers.
  • The ratio of the PPI for publishing & printing relative to overall PPI is an indication of the profit margin of printers and publishers.
  • The ratio of the PPI of publishing & printing relative to the PPI of paper & paper products is a proxy of the paper input costs of printers and publishers.
  • The ratio of the PPI of publishing & printing relative to the "exchange rate adjusted" PPI for machinery & equipment is a proxy for the equipment input costs of printers and publishers. (To calculate equipment prices, the Euro CPI and Euro exchange rate are used, together with local price indices).

Enquiries

Dr. Azar Jammine (011) 483-1421 / Ilse Fieldgate (082 373 6933)

If any of your details have changed please notify Monita Kelly: monitak@econometrix.co.za / Website: www.econometrix.co.za

 

 

 

 

 

 

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