Results from Picon's Q1 2003 quarterly industrial trends survey of supplier activity show little change from the previous quarter with output volumes, prices and employment levels all remaining constant. General confidence levels have however, dropped for the first time since Q3 2001. Export confidence, although still positive, is also showing signs of a downward trend.

General business confidence is down across all sectors with the exception of the consumables sector which shows a reasonable increase in comparison.

Says Picon's chief executive John Brazier: "Suppliers are suffering from a slow market and decreasing confidence due to current political and economic factors. The situation is exacerbated because growth markets which would normally provide sales opportunities at times like these have been badly affected by the conflict in the Middle East."

Domestic order books remain at below normal levels in more than half of the participating supplier companies and although there is a slight improvement anticipated for Q2, especially by the converting machinery suppliers, the general view is that there will be little change in the domestic market in the short term.

Overall export confidence has also declined, affected by declining confidence in the presses, finishing, and converting sectors. Confidence levels in the prepress, paper and consumables sectors, however, experienced a slight increase.

Export orders - both current and forecast - have also dropped and prices, subject to political, economic, and currency exchange factors, have fallen. The current weakening of sterling against the euro has eased pressure on margins for exporters but has impacted on those suppliers importing equipment to the UK.

Overall pricing levels remain low at the same level as at the end of 2002 and are not forecast to rise. Profits are, consequently, expected to be down in Q2 2003.

Expenditure continues to focus on efficiency improvements and has, in the reported quarter, been diverted from capital equipment to expenditure such as product and process innovation and training which have both attained the highest level of reported expenditure since early 2001.

Influenced by speculation surrounding the Government's euro stance reported at the time of the Chancellor's budget statement, the majority of respondents to the Picon euro poll (75%) have reverted to the 'wait and see' option.

[时间：2003-06-05  作者：Bisenet  来源：Bisenet]