Last week, printers across a number of sectors reported falling distress levels, following research by Begbies Traynor that found the number of print and packaging firms experiencing financial difficulty had dropped off significantly.

However, the day after PrintWeek went to press, the ONS announced that the country had gone into a double-dip recession.

According to the BPIF survey, the first quarter of this year was difficult, although not as tough as some had speculated.

Chief executive Kathy Woodward told PrintWeek: "A preliminary look at our data is that Begbies is being a little optimistic, but we are seeing some increase in confidence in individual companies.

"The next two quarters are still going to be difficult."

Overcapacity in the industry continues to be a major issue, with 3% of companies producing less than 50% of their capability – the survey’s worst ever results.

Exactly half of respondents worked at below 80% capacity during Q1, compared with 37% in Q4 2011 and just 18% a year earlier.

Employment decreased in the sector, with a –6 balance, however this was less than the –8 forecast, while a balance of +15 is projected for the next three months.

Prices tumbled for the fifth straight quarter, but this was offset slightly by more than a quarter of respondents securing cheaper paper and board prices during the period.

Profit margins showed varying degrees of change.

Only 3% of businesses reported a loss during the first quarter, compared to 15% in the last quarter of 2011.

However, the number of printers reporting a profit of over 6% dropped from 36% to 28%.