7 August 2018

Q2 output and orders matched the downbeat forecast – boost expected in Q3

Q2 OUTPUT AND ORDERS MATCHED THE DOWNBEAT FORECAST – BOOST EXPECTED IN Q3 DESPITE CONFIDENCE AND COST CONCERNS

The UK printing industry almost exactly matched the downbeat expectations for Q2, as far as output and orders are concerned –fortunately the forecasts for Q3 suggests some growth ahead.

The latest Printing Outlook survey shows 33% of printers increased output levels in the second quarter of 2018. A further 32% held output steady whilst 35% experienced a decline in output. The resulting balance (the difference between the ups and the downs) was -2; down on the +23 recoded in Q1 and just undercutting the Q2 forecast of -1. The Q2 period seems to have been characterised by fluctuating periods of activity and inactivity with significant dependence on the performance of clients' markets.

There also appears to have been a consistent reduction in commercial print run-lengths and an increase in ordering delays. Anecdotally, the packaging sector has exhibited more stability but client performance and levels of uncertainty remain a concern.

In Printing Outlook this quarter:

• BPIF Brexit Barometers – to gauge and monitor confidence during Brexit negotiations and forecast conditions after Brexit.
• UK Printing and Packaging trends and forecasts – confidence, costs, pay reviews, capacity, productivity, margins, paper consumption, ink sales volumes, a new industry financial health analysis, insolvency statistics and more.
• Data, forecasts and commentary on the UK economy and the advertising sector.

Thanks again to all survey respondents for their participation, the survey has achieved one of its best ever response rates this quarter. Sponsorship from Konica Minolta means all respondents will receive a printed copy of Printing Outlook. Please respond to the next survey in October to ensure that you receive your copy in the future.

The full Printing Outlook report is available as a free download to BPIF members using the 'More on Printing Outlook' web link below.

There is also an unrestricted press release available on the download link below.