Arlington, VA, March 10, 2003 -- The packaging machinery sector continued a pattern of strength during February, according to the Packaging Machinery Manufacturers Institute's Business Conditions Index (BCI). All four of the indices dropped slightly for the month, but remained above 50, the index level indicating expansion or growth. General Business Conditions fell 3.4 points to 57.1; Quotations dropped 0.4 points to 59.6; Shipments dropped 0.8 points to 52.5; and New Orders fell 2.7 points to 59 points.

"This is the second straight month we have seen all of the measures stay above 50 points," says Charles D. Yuska, president of PMMI. "The index continues to show consumer and industrial companies are identifying, researching and purchasing capital equipment."

An index of more than 50 indicates an expansion in the period and an index below 50 indicates a slowdown in activity. The February BCI tabulates the input of approximately 100 of PMMI's 500 PMMI member companies. The BCI is based on PMMI's "How's Business?" survey, a weekly poll of member companies. PMMI's Business Conditions Index (BCI) collects data on four business indicators: general business conditions, new orders, shipments and quotations/proposal activity on a weekly basis.

Packaging machinery sales, quotation activity, new orders as well as general business conditions are leading indicators for consumer goods companies' consumer confidence. If consumer products companies believe that demand will weaken, they tend not to invest in new capital equipment. If, however, they feel demand will pick up, they tend to invest in machinery that will bring their products to market quickly and efficiently.