The quarterly online trading trends survey, carried out at the beginning of April, revealed that 58% of the 110 responding companies were receiving order levels in line with what they had forecasted in last quarter's Printing Outlook survey.

However overall confidence was low as those reporting growth were outweighed by those seeing a drop in demand; 29% reported deterioration in their order books compared to 9% experiencing an improvement.

Output was another cause for the generally pessimistic outlook as although around two thirds stated that production was unchanged, the number that cut output was more than double that producing more.

Competitors pricing below cost topped the list of respondents’ biggest business concerns with 80% citing it as their worst issue while late payment and under utilisation of capital equipment were selected as the second and third biggest concerns respectively.

The survey also revealed an increase in concern over paper and board prices with expectations that they are set to increase in the coming months.

Employment levels remained largely stable among respondents with 80% reporting no change and investment plans also remain in line with predictions made in the last survey.

Training, plant and machinery and product and process innovation were the predominant areas that respondents intended to invest, the survey showed, with 86% expecting to invest more or the same as predicted on staff training and 84% on innovation projects.

BPIF CEO Kathy Woodward said: "It is encouraging to note that orders and output have held steady for three consecutive quarters now, although somewhat disappointing that confidence has waned and that expectations for the current quarter are lower.

"To offset the impact of price erosion in a tough market, driving down costs and improving productivity has to remain high on everyone’s agenda," she said. "It is therefore welcome news that printer’s plans for investment remain strong, with training and innovation as their main focus".

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