According to the Direct Mail Information Service (DMIS) the  volume of consumer mail in the second quarter of this year dropped to just over 1bn items, a 1.3% dip compared to the same period in 2003. But business-to-business volume increased to 370m items, up 2.2% on last year.

Figures from Thomson Intermedia showed spend falling for the fifth consecutive quarter with overall spend at 231m, compared with 287m in the previous quarter.

DMIS managing director Jo Howard Brown, however, was confident DM's prospects were not bad.

"The financial services sector is going through a difficult period and, as the largest sector, this impacts on the overall volume figures," she said.  "Elsewhere, the signs are still encouraging and a recovery in the financial sector is sure to see volume and expenditure rise again."

Vertis Leicester managing director Richard Husband said that although there had been a downturn throughout the year, there were signs that it would end stronger.

"The back quarter looks healthier but I am getting no indication that volume will increase in 2005," he said.

Print management firm Target Direct Print managing director Peter Frings added that although summer was quiet for print firms, buyers are set to spend more on DM over the next few months.

"This autumn could be a bumper one in terms of volume. Getting slots at direct mail houses is difficult at the moment with many of them filling up rapidly," said Frings.

Last month the Bellwether Report showed that spending in the sector had slowed up and there was concern that this would be detrimental to print spending (PrintWeek, 9 August).

Story by Philip Chadwick