Output levels were marginally positive, and just above forecasted levels in Q1, while order numbers were marginally negative and below forecasted levels.
While confidence in the general state of trade did not sink to the depths that had been anticipated in the Q1 forecast, the BPIF said it remained precariously positioned and was not yet showing signs of rebounding.
The main concerns companies said they are facing are a perception that some competitors are pricing below cost, that wage pressures have reached restrictive levels, and that their own sales levels are not sufficient to drive their strategic plans.
For a few quarters the survey has been monitoring concerns over taxation and red tape and the BPIF said these have both continued to build and are now ranked among the top five business concerns.
Respondents to the survey are continuing to make progress towards addressing sustainability issues, with more companies now measuring carbon emissions, setting targets, validating those targets, gaining relevant accreditations, and investing in initiatives to further improve their sustainability performance and credentials.
The most popular area of attention for sustainability related investments is waste reduction, which was selected by 73% of respondents, ahead of solar panels and electric vehicles.
BPIF economist Kyle Jardine said: “Last year was a slow-burning improvement for activity in the industry, but despite some positive sounding rhetoric from government regarding supporting business growth, action so far has only burdened businesses with more costs and regulations.
“Wage pressures have blocked recruitment intentions – and together with wider economic uncertainties, have restricted the ability of companies to reach their desired levels of investment. This culminated in a crisis in confidence, as reported last quarter, which the industry is now attempting to climb out of.”
BPIF CEO Charles Jarrold added: “Our members have been clear; they are crying out for government to start supporting businesses, reduce the cost, regulatory and compliance burden they face, and make it easier for them to invest in both skills and technology.
“We are frequently raising these desires with government, and it is with some interest that we now await the unveiling of the government’s industrial strategy.”
The survey also found that industry capacity utilisation consolidated slightly in April, with the vast majority of companies operating in the 60-99% ranges.
For the second successive quarter, more companies decreased, than increased, employment levels, while intentions for Q2 are more negative.
In April, paper, board, and other substrates costs returned to being the largest cost component for respondents, with an average 34% share of total costs, up from 31% in January.
The online survey was carried out between 1-22 April 2025 and received responses from 108 companies employing 9,635 people and with a combined turnover of £1.6bn.
