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Cardboard Boxes Pile Up as Inflation Dents Online Spending

Friday, July 29, 2022
Cardboard Boxes Pile Up as Inflation Dents Online Spending © Reuters. Cardboard Boxes Pile Up as Inflation Dents Online Spending

(Bloomberg) -- Even the humble cardboard box isn’t immune to inflation.

Demand for boxes was lower than expected in the second quarter and will likely remain flat as Americans shift their spending habits, International Paper chief financial officer Tim Nicholls said Thursday. Inventory is piling up as rising costs for consumer goods prompt people to spend more money on things like travel, he said.

The move is a stark reversal from earlier this year, when stretched supply chains created a shortage of packing materials. The pandemic fueled higher demand for cardboard boxes as people stuck at home ordered goods via e-commerce.

“I think it’s a reaction to inflation,” Nicholls said Thursday in an earnings call. “Inflation is real and people are making choices.”

©2022 Bloomberg L.P.

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19-08-2022 14:21:41 (UTC+7)

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