Picon, which represents the industrys equipment manufacturers, found that 19% of its 140 members were more optimistic towards future trading conditions in last years fourth quarter compared to only 2% in the previous quarter.

However, the BPIFs Directions survey reported a minus 32% balance among members views on the general state of the trade for the final quarter of 2001, compared to the forecast positive balance of 52% for that period.

And it also reported a minus 42% forecast for the first three months of 2002, although firms working below capacity had dropped from 79% to 67%.

Picon said that 30% of equipment manufacturers expected a rise in UK ordering and 18% predicted an increase in export trade during this quarter.

Marketing executive Mark Oakes said: "One reason that the manufacturers are more optimistic is that in leaner times printers tend to update their machinery, ultimately to improve their efficiency. Another reason is that they are looking forward to Ipex to generate further sales."

Cicely Brown, director of corporate affairs at the BPIF, said: "Printers havent made a lot of investment over the last three months so manufacturers are probably hoping their pockets are a little bit fuller. My gut feeling is that the print industry is generally optimistic about the year ahead."

Some 11% of manufacturers said profits had risen in the fourth quarter, compared to quarter three when not one increased profits. And 22% expected profits to go up this quarter.

The BPIFs report highlighted the need for printing companies to hold their competitive edge by "negotiating favourable terms with suppliers".

Story by Claire Sames