Despite deteriorating economic conditions, 41 of the 91 respondents believed they could raise margins in spring 2008 compared to the corresponding quarter in 2007.

According to the quarterly BPIF report, released today (4 April), this optimism is driven by increased margins delivered by improved efficiency gains and, in part, volumes gathered from the spate of business failures earlier in the year.

However, the report contained indications that the business environment within print had grown gloomier rather than brighter.

The number of firms working below capacity increased from 41% in the last survey, to 62% – the same figure as 12 months previously.

Debtor days have risen to their highest level since records began six years ago, indicating that the financial strain is taking its toll on customers and related services.

In addition, two of the sectors surveyed within the study believed that severe price-cutting to win new business or fill capacity has returned.

For Deputy News Editor Will Mitting's view on the report read his blog .

For a full analysis see next week's PrintWeek.