UK Print Confidence Rises

UK suppliers across all sectors are more confident about 2004 and are expecting output to grow significantly according to the Picon members quarterly trends survey for the final quarter of 2003.

UK suppliers across all sectors are more confident about 2004 and are expecting output to grow significantly according to the Picon members quarterly trends survey for the final quarter of 2003.

Business confidence amongst suppliers has risen to a positive balance of 34%, the highest recorded response since the survey began in 1998.

Of the total number of companies answering the survey, 36% said they were more confident, while only 2% said they were less confident about future prospects.

John Brazier, Picon's Chief Executive said: "The research shows that the general trading conditions will remain tough for UK suppliers in 2004 but the reported rise in capital expenditure by UK printers suggests that, at home at least, conditions are improving slowly." With regard to domestic orders, 20% of respondents said total order books were above normal while 29% said they were below.

The balance of -9 indicates that order books are at their highest level since the fourth quarter 2002.

The volume of output is also expected to rise following some improvement at the end of last year.

Forecasts indicate that 40% of companies believe output will rise and 5% are expecting it to fall in the first quarter 2004.

The balance of 35%, the highest figure recorded since the same period in 2001, shows that the underlying trend is in an upward direction.

Export confidence continues to be positive albeit weak, with 21% of companies more confident and 18% less confident making a balance of 3%.

On a sector level the presses, finishing and converting sectors are less confident overall, suffering as a consequence of unfavourable exchange rates and the inability to implement competitive pricing.

Few companies were able to raise export prices in the fourth quarter of 2003.

Only 6% of respondents reported a rise whilst 32% dropped prices further.

Forecasts show little improvement.

In the first quarter of 2004, 9% of companies expect to raise prices and 32% will see further export price cuts.

Mark Oakes, Picon's marketing executive said: "The issue of pricing continues to be a problem for Picon members.

Whilst we are beginning to see signs of a gradual upturn in the global economy, the weakness of the US$ is providing export opportunities for overseas competitors whilst increasing pressure on UK companies to cut prices further.".

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