The report outlines that over the next six months survey respondents expect increased investment in plant and machinery, but a reduced investment activity in buildings.

Meanwhile, the outlook for general business expectations over the next six months remains favourable across most states. The most optimistic state over the outlook period is Western Australia with a net balance of 54.6 per cent followed by Victoria with a net balance of 27.6 per cent.

While respondents predicted improvements in most sectors, folding cartons forecast a decline and continuous stationery, books, magazines, periodicals and newspapers and trade binding forecast no change.

Hagop Tchamkertenian, national manager for policy and government affairs at Printing Industries says differences in performance and intentions were also evident based on company size.

He says, “Mid-size businesses are more optimistic about business conditions then their smaller and larger counterparts. But when it comes to capital expenditure intentions, the larger businesses still have positive sentiments.

“In the area of employment intentions, smaller establishments are forecasting increased workforces while labour shedding intentions seem to be concentrated amongst mid to large sized businesses.”

Tchamkertenian adds that the March 2011 quarter outcomes may have been influenced by both seasonal influences as well as the general softness in economic conditions.

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