The latest issue of the BPIF's Directions survey has reported mixed results, with almost two-thirds of the industry still working under capacity.


Although a seasonal upturn was reported, most firms said they were still experiencing a "subdued feeling," with increased costs, reduced margins and overcapacity all posing problems.


"With raw material costs increasing and price-competition still intense, printers will not be over-celebrating this year," said BPIF director of corporate affairs Mike Hopkins.


Three-quarters of those responding in the survey saw an increase in raw material prices, with 41% expecting further increases and only 5% optimistic about a reduction.


Just over 50% of printers expected to hold prices at their present "unsatisfactory" levels, but 37% felt they would have to make further reductions.


Printers also forecast a small seasonal downturn in business in December and January. Over two-thirds of respondents felt that the general state of the trade would be no more difficult or even better in the forthcoming three months.


The report indicated that prospects for the first quarter of 2001 offered "a degree of encouragement". Hopkins said he hoped the optimism was based on orders, and would not "end in tears".


Story by Andy Scott