According to the survey, 47% of printers reported stable trading conditions and 16% saw an improvement between December 2009 and February 2010, while 37% reported a weakening in the state of trade.

The BPIF said the results indicated a massive improvement on this time last year, when the survey reported that printers were operating at their lowest capacity for 18 years.

Corporate affairs director Andrew Brown said: "The results are in line with forecasts made last time. Although activity slowed during the winter months after the autumn seasonal uplift, it is encouraging that trade stabilised or improved for most respondents, with the majority also expecting stable conditions in the three months ahead.

"However, we are concerned that domestic demand remains extremely depressed, and that severely weakened margins could be further undermined unless printers are able to raise selling prices and hold the cost of labour and raw materials in check."

Unfortunately, for the majority of printers, this would seem unlikely, as more than half believe they will have to pay more for raw materials in the coming quarter and just 9% expect to be able to raise prices.

The survey claimed employment prospects also appeared "brighter" this quarter, with 16% of firms taking on new staff and 70% planning to keep the same number into the next period.

Elsewhere, more businesses are planning to invest in new plant and machinery, with 44% looking to spend in the next 12 months, although this has been attributed to the 'Ipex effect'.

Excess capacity continues to be an obstacle as 37% of respondents claimed output decreased. Further price deflations were also reported, although 49% of printcos held domestic prices steady.