7 August 2013

Orders and output exceed Q2 expectations - forecast now more upbeat for Q3

Activity within the UK print trade was more buoyant than expected during the second quarter of 2013, according to the latest BPIF Printing Outlook report. The July survey showed that whilst a majority of 53% of companies reported no change in demand levels; more than a quarter (28%) said that the volume of domestic orders had improved. This outweighed a figure of 19% that suffered deterioration and also exceeded expectations from last quarter.

Summary of key findings: 

• Print demand rose above expectation in Q2 2013 with renewed optimism for third quarter. 
• Confidence starting to rebuild. 
• Capacity better utilised and some lengthening in lead times. 
• Surprise fall in employment levels. 
• Falling output prices still affecting many. 
• Energy and labour costs rise but other costs generally stable including paper and board despite earlier fears of hikes. 
• Margins narrow on balance but number of firms affected on the decline. 
• Export trade slows but prospects appear brighter. 
• Capital expenditure plans remain key for most printers.