The trade body's quarterly report on the period to 30 November 2010, which was based on an online survey of 98 companies with a combined turnover of £1.3bn and 11,917 employees, also found that 47% of those questioned expected to spend more than last year.
The upbeat investment forecast came on the back of a strong performance in the Autumn, with a significant majority (+28) reporting that trade had improved. However, the trade boost was not universal, as 18% of respondents reported a slowdown - the highest reading since last winter.
Andrew Brown, BPIF corporate affairs director, said: "This is traditionally a better time of year for printers. Any improvements, while very welcome, is from a very low base compared with pre-recession levels."
Meanwhile, forecasts for the three months to the end of February were not promising, with 42% predicting a deterioration in trade and 48% expecting trading to remain flat.
The print sector also witnessed a fourth quarter decline in print and packaging insolvencies, according to Begbies Traynor, which recorded a total of 66 print and packaging insolvencies in Q4, down from 79 in Q3 and well below the 105 insolvencies recorded in Q4 2009 and 2008.
Mark Halstead, operations director, Red Flag Alert, Begbies Traynor, said that print has so far proven resilient, and that it is generally not understood that print is a good risk sector.
"The average printer will have a large number of clients across a wide spectrum of industry and service sectors and this will protect a well run print business if they have provided for some bad debts this year," he said.
Halstead added that printers must seriously begin looking at cash-flow and cash conservation immediately, and start looking for good margins in new business without risk attached.
"Too many printers concentrate on keeping the presses running and the staff working, but this is not always the answer if it is costing them money to do so. Ensure the margin is there in the deal or just say no."
Raw material costs are also on the rise, with upward cost pressures expected to intensify. Some 77% of companies paid more for paper and board over the past three months.
Three-fifths of respondents expect to pay higher charges in the following quarter, with more than a third expecting increased prices for ink and just under a third expecting to pay more for energy.
Future forecasts point to small businesses suffering in 2011 due to a combination of events such as VAT at 20%, HMRC tightening its Time to Pay requirements, and banks having stricter lending criteria.
Halstead said: "Unemployment is also rising. Then SME businesses currently struggling to pay the bills will begin to fail.
"This is when print will be vulnerable to losses, not just short term losses such as insolvent businesses costing them money, but replacing that business will be harder in future."
