UK print industry suffers sharp Q2 downturn as costs squeeze profits

The UK printing and printed packaging industry suffered its sharpest downturn in six years during Q2 2026, with rising costs, political uncertainty and conflict in the Middle East hitting output and profitability, according to the latest BPIF Printing Outlook survey.

The report found that 42% of printers experienced a fall in output during the quarter, while 37% maintained production levels and just 21% recorded growth. This produced an output balance of -21, down sharply from -2 in Q1 and marking the most negative result since the Covid shutdowns.

However, the British Printing Industries Federation (BPIF) expects the downturn to be short-lived, with the Q3 output balance forecast to rise to +7.

Sales have emerged as the industry’s biggest business concern, with 55% of respondents citing sales levels among their top five concerns, up from 33% in April. Profitability was the second-largest concern, selected by 39%, while competitor pricing followed at 34%.

The survey also highlighted widespread cost pressures. Labour remained the industry’s largest cost component, accounting for 34% of total costs, while 62% of respondents reported increases in paper prices during Q2, with the average rise reaching 4.3%.

“Orders and output have taken a knock, but the industry is expecting some degree of recovery as we move into the second half of the year,” said Kyle Jardine, BPIF economist.

BPIF chief executive Charles Jarrold added that a pick-up in confidence, falling uncertainty and increased demand would be needed to ease concerns around demand and profitability.

The Q3 survey forecasts a modest improvement in both output and confidence, suggesting Q2 could prove to be the low point for the industry in 2026.