Cardboard Box Index,
Definition of Cardboard Box Index:
The cardboard box index is used by some investors to gauge consumer goods production. The output of cardboard boxes is believed to be an indicator of future production of consumer goods, since cardboard containers are so common for packaging and shipping these goods. .
An index that measures the manufacture of cardboard boxes to estimate consumer goods production. It is an index that acts as an industrial indicator. When more boxes are produced, there is probably a greater demand for consumer goods.
The cardboard box index is considered a reliable measure of manufacturing by some investors because it may reflect aggregate business estimates of future consumer goods sales. It is estimated that close to 75–80% of all non-durable goods are shipped in corrugated cardboard containers. Therefore, the thinking goes, the greater the amount of cardboard boxes ordered, the greater the volume of production planned for goods that will be packed in boxes. Because companies need cardboard to package and ship goods, the production of cardboard boxes is thought to be a leading indicator of manufacturing activity.
How to use Cardboard Box Index in a sentence?
- The cardboard box index refers to the idea that an increase in the production of cardboard boxes is a leading indicator that goods manufacturing will increase, or that a decline in cardboard box production signals a manufacturing slowdown.
- By itself, the cardboard box index is too volatile to be used to predict economic trends, but can be used alongside other indexes to do so.
Meaning of Cardboard Box Index & Cardboard Box Index Definition