Overall, manufacturing output contracted by 0.7% in April 2012 compared to the previous month. Some sub sectors of manufacturing such as pharmaceutical products and preparations recorded falls of up to 6% while output in other industries, such as computers, electronic and optical products rose by 8.1%.

Year-on-year manufacturing fell overall by 0.3% with some sub sectors reporting declines of up to 9.5%. The most significant growth was seen in the transport equipment industries, which recorded an increase in output of 8.8%, year on year.

Lee Hopley, chief economist at manufacturers’ trade organisation EEF said production was hovering at a level last seen at the end of 2010.

Other research published by the Chartered Institute of Purchasing and Supply (CIPS) found further bad news for the manufacturing sector in May with new orders dropping at the fastest pace since March 2009. The index fell by 4.3 points in May to 45.9, the second-steepest fall in its 20-year history.

CIPS senior economist and author of the report Rob Dobson said that the contraction could not be wholly blamed on the Eurozone crisis but on the "increasing weakness" of the domestic market.

"Barring a sharp turnaround in June, manufacturing output could fall by as much as 1% in the second quarter, making the sector a drag on the broader economy and raising the risk of the recession extending into mid-year," he added.

BPIF chief executive Kathy Woodward said the trade association had received "mixed feedback" regarding trading conditions in April and May.

"In general UK members have reported a slow April impacted by the bank holiday but they are also witnessing a trend to delay printing spend. Members are seeing intense planning activity for the final quarter of the year but some delayed programmes throughout the next quarter," she said.

Woodward added that the picture emerging from Europe was increasingly bleak.

"It is evident from recent meetings with trade associations across Europe that the continent is experiencing an even greater contraction in demand as a general fear regarding the economic future impacts on business confidence."

Meanwhile, some UK print companies told PrintWeek they had experienced a "very positive" April and May.

Precision Printing managing director Gary Peeling said that sales over the two months had been "much stronger" than in the first quarter of the year, despite the bank holidays.

"We were expecting a drop off in demand around the bank holidays and especially in the build up to the Jubilee weekend but I am pleased to say we saw no such thing, which we see as an indication that things may be looking up," he said.

"Historically we always see a drop off in demand around bank holidays but this year our orders were the same as for a full working week."

Elsewhere, Mortons Print chief executive Ian Fisher said that sales at the company were around 5% up year-on-year but that margins are still being squeezed.