Nov 08, 2006. /Lesprom Network/. Housing and car industry are suffering badly and pulling the US economic growth down. But the news is not all bad. Private sector employment was stronger than predicted. So strong that the US jobless rate fell to the lowest rate in 4.5 years. That will help to keep the household consumption growing and improve the chances of avoiding a full-blown recession. The news also boosted stock market, raised long-term interest rates and strengthened the dollar. In Europe, the ECB did not raise interest rates in their last week meeting. Inflation fears appear to be higher among the ECB-leaders than the very limited rise in the rates themselves. In Germany unemployment fell to a 4-year low and the government plans to increase the non-wage labour cost cuts. Euro-zone economic confidence is on its highest level since early 2001 but clouds continue to darken the 2007 outlook. In Japan, deflation appears to be, once again, lurking around the corner. Jobless rate climbed slightly higher. Household spending fell over 6% in September, one of the largest drops seen. Central bank kept the interest rate unchanged at 0.25%. Government continues to be confident of a late 2006/early 2007 pick-up and most analysts agree that this is likely. In China, the efforts of the government to dampen the economic growth are taking hold, but only very slowly. One of the key worries of the economic analysts is how China will use the money reserves which exceeded one trillion dollars at the end of October. In the paper industry, North American printing and writing papers showed a 3.4% drop in September shipments. Only uncoated mechanical grades showed positive figures. In Europe, most publication papers are said to currently enjoy healthy order books. Focus of the pulp market will be in London this week where buyers and sellers meet during the Pulp Week. The supply side is still tight, especially in softwood, and can even get tighter due to lower wood chip availability in North America after the cooling off in the housing markets. The price increases announced for September-October continue to go through. The PIX NBSKP benchmark moved up by $1.8/tonne, or 0.25%, to $727.04/tonne. The USD weakened last week by 0.6% against Euro and our NBSKP index value in Euro dropped at 569.78 Euro/tonne, down by 2.03 Euro/tonne, or by 0.4%. In BHKP, the $20/tonne price increases for November are meeting resistance, perhaps more than the previous hikes during this cycle. Weaker USD pulled the PIX BHKP benchmark lower in Euro-terms. The index closed at 519.79 Euro/tonne, down by 0.6 Euro/tonne, or 0.11%. After converting the Euro-index into USD, it gained by $3.25/tonne or by 0.5% and reached $663.25/tonne. In coated mechanical papers, there was an announcement last week made by Finland-based Myllykoski that the company plans to close its Dachau mill in Germany before summer 2007. Latest changes in the price data included both upward and downward adjustments. The approximately 0.4% weakening of the Euro against non-EMU currencies had a slight upward effect to the benchmark. The PIX LWC benchmark rose by 1.55 Euro or 0.22%, and ended at 701.67 Euro/tonne. The latest price increase efforts for this autumn seem to have varying success. Price data reported to us presented a mix of both upward and downward changes, now with a slight emphasis on the downward ones. The strengthening of the Euro against non-EMU currencies had an upward effect on the PIX Coated WF index. In spite of this, the benchmark adjusted downwards, by 0.86 Euro or 0.12%, and it ended at 722.51 Euro/tonne. Uncoated woodfree papers showed similar downward changes as the coated ones regarding European shipments to the same area in September, and similarly, year-to-date figures were still positive. We received price changes to A4 B-copy paper that pointed mostly upwards. Assisted by the small upward push effect of the weakening Euro against non-EMU currencies, the PIX A4 B-copy index gained by 2.54 Euro or 0.31%, to 817.11 Euro/tonne. European newsprint market does not seem to be much disturbed by the slightly negative shipment statistics for September. The first nine months comparison was still positive. Newsprint prices reported to us contained practically no changes. A weakening Euro presented a slight upward impact on the index, which adjusted by 0.21 Euro or 0.04% to 520.16 Euro/tonne. In packaging sector the US as well as the European containerboard shipments continued at a satisfactory level in September, despite the slower pace of the US economic growth. Containerboard price increases of $40/tonne from January 1, 2007, have been announced in the US. In Europe, price increases continue to be implemented. Higher quotes continued to be received for all PIX Packaging indexes and the currency movements also helped the indexes this time. The PIX Kraftliner index climbed by 2.65 Euro, or 0.5%, closing at 516.80 Euro/tonne. The PIX White-top Kraftliner index gained 3.98 Euro, or 0.6%, and closed at 685.14 Euro/tonne. In the recycled fibre based corrugating grades, the PIX Testliner 2 index moved up by 1.37 Euro, or 0.34%, to 409.23 Euro/tonne. The PIX Testliner 3 index headed higher by 1.28 Euro, or 0.34%, to 380.03 Euro/tonne. The PIX RB Fluting went also up by 1.21 Euro, or 0.33%, to 365.50 Euro/tonne.