In the run up to the busy Christmas period, 49% of firms' order books were stronger than normal for the time of the year, at their highest point since April 1997.

The balance between the percentage of printers reporting higher and lower selling prices was the most positive since January 1996 with a figure of +25.

The balance of printers reporting increased margins on sales was possibly one of the strongest recorded in the survey's 25-year history of the survey at +43.

In addition, the percentage of firms working below capacity dropped 20% from the last quarter to 41%.

In comparison, the three months to February 2008 are expected to be less upbeat, with the majority of respondents optimistic, but cautious with economic conditions set to deteriorate.

More than a quarter (23) of the survey's 90 respondents believed conditions would worsen, while 48 expected trade to improve over the next three months compared with the same period last year. A further 19 expected conditions to stay the same.

The consensus from those interviewed was that capital expenditure in 2008 would remain focused on updating existing equipment to achieve greater work efficiencies.

BPIF corporate affairs director Andrew Brown called the findings "an improvement in the industry's trading position over the autumn", although it comes at the high price of company failures and job losses.

He added that respondents' guarded optimism for the New Year was understandable and as economic conditions tighten in 2008, "we can expect to see some print companies prosper while others collapse".