SAN FRANCISCO, Sept. 4, 2009 (RISI) - Showing slow yet steady signs of improvement, US paper and board output in July increased 3.1% and 206,000 tons sequentially from June yet was still down 10.0% compared with July 2008 output, according to figures from the American Forest & Paper Assn (AF&PA).

Through the first seven months of 2009, production is off 14.9% compared with the first seven months of 2008.

While the July output numbers show month-to-month improvement, the overall results for 2009 are down. July's year-over-year output decline was 10.0%, slightly worse than June's drop of 9.7%. May's year-over-year output decline was 13.6%, while April's was 16.3%.

In July, output of major US grades unbleached kraft linerboard, uncoated mechanical, and coated papers dropped by between 7-24% compared with July 2008 output. Continuing its negative freefall in terms of a reduction in output was newsprint, which was off 30%, though less than the drops in previous months, according to the AF&PA report.

Uncoated freesheet (UFS) production, which had been hard hit earlier this year, was off 10.3% in July. Year-to-date, UFS output is off 14.6%.

In terms of year-over-year percentage declines, paper grades fared worse than paperboard grades for the fifth consecutive month.

Total US paper output was down 17.9% year-to-date through July, and paperboard output was down 12.5% year-to-date.

In total, July output declined by 750,000 tons, totaling almost 6.8 million tons of paper and board, compared with 7.6 million tons in July 2008. Year-to-date output is off 7.8 million tons compared with January thru July 2008.