Aerospace and Packaging
Aerospace production should grow and packaging needs should accelerate into 2016.
Aerospace Production Should Grow in 2016
While the aerospace industry is global and one of the largest export industries in the U.S., consumer trends in air travel correlate reasonably well with aerospace production.
System revenue passenger miles (SRPM) is a measure of the number of miles flown by each paying customer. In June, the number of SRPM was the second highest in history. Compared with one year earlier, SRPM grew by 4.0 percent, which was the fastest rate of growth since April. The annual rate of change continued to accelerate and is now growing at 3.0 percent, which was the fastest rate of growth since September 2011.
Consumer spending on airfares also has been growing, however, the rate of growth in spending has slowed, despite the accelerating growth in miles flown.
The net result is that aerospace industrial production should continue to grow in 2016. That rate of growth may slow somewhat as the global economy cools, but the backlog of orders at Boeing and Airbus should keep the industry busy with plenty of work.