While the PMI reported the first contraction for the manufacturing sector in two years, the majority of printers questioned by PrintWeek reported strong August trading.

Companies such as direct mail business Loricas Solutions said trading had improved in August but Loricas chief executive Howard Matthews added: "We have not yet turned the corner as year-on-year trading figures continue to decline".

Elsewhere, reports were more positive with companies such as Colchester Print Group (CPG) claiming year-on-year gains.

According to managing director Philip Colchester, August was above budgeted sales for the month and approximately 25% up on August 2010 sales.

Meanwhile, Eclipse Colour Print managing director Simon Moore said the company had to "keep the foot on the pedal" until the year-end after reporting a 74% increase in August sales over the same period last year.

In addition, X1 sales director Tim Lance said he was far more optimistic than this time last year and stressed annual holidays would have affected figures at companies that may have experienced a reduction in sales.

However, printers are still being affected by ongoing price rises in paper and paper products, whether they choose to pass on or absorb such costs.

Matthews said: "Increases in paper and paper products continue to rise and I do not envisage input costs will remain static during the next 12 months or beyond."

He added: "We are constantly being benchmarked against our competitors and unfortunately those placing their print work
are under pressure to go for the cheapest quotation."

FE Burman managing director Michael Burman said increased paper costs could only be passed on on shorter-run jobs where paper was a smaller proportion of the overall cost, while MetroMail managing director Alan Purvis said the company had to improve efficiency year-on-year to maintain margins.

"We’ve always taken the view it would be impossible to pass on increased charges to clients so have looked to improve efficiency year-on-year in order to maintain the headroom between cost and sales," he said.

However, Colchester said that the days of absorbing these charges had long gone. "We are trying to pass most if not all the costs onto our customers," he added.

AUGUST PRINT SALES
Inc Direct up 56% on same period in 2010
Colchester Print Group up 25% on same period in 2010
Eclipse Colour Print up 74% on same period in 2010
First4 Print Finishing "We are booming rather than bombing"