The release of the March 2010 quarter main economic indicators confirm that the printing industry is continuing to make a very modest yet welcome recovery.

Earlier today the Australian Bureau of Statistics (ABS) released the National Accounts data showing that the printing industry growth rate was flat in trend terms during the March 2010 quarter resulting in an annual growth rate of 2.3 per cent.

At the Australian economy level the growth rate for the quarter was 0.6 per cent in trend terms and 2.7 per cent for the year to March 2010.

Key drivers of economic growth were government and household expenditure; investment in dwellings and machinery and equipment. Detracting from growth were net exports (exports less imports).

At an aggregated industry level mining, manufacturing, construction, wholesale trade, transport, postal and warehousing, financial and insurance services, and professional, scientific and technical services all made positive contributions to growth during the quarter.

State final demand expressed in trend terms shows that the Australian Capital Territory is growing at the fastest rate of 8.1 per cent per annum followed by Victoria (5.3 per cent); New South Wales and South Australia (each at 5.2 per cent); Western Australia (4.6 per cent);  Tasmania (2.0 per cent). Annual rate of growth was flat in Queensland while Northern Territory contracted by 3.1 per cent.

Other key March quarter indicators released recently show printing industry sales grew by 0.5 per cent during the March quarter compared to the previous quarter. March quarter sales were also 0.7 per cent higher compared to the same period a year earlier.

As a result of the modest recovery in sales, the year to March outcome was 11.2 per cent lower than the corresponding period a year earlier implying that printing industry sales have yet to rebound to the level that they were a year ago.

Total printing industry sales during the  year to March amounted to $8.3 billion. This is well down on the pre-global financial crisis level of $10.4 billion reported two years ago.

New capital expenditure in the printing industry was also reported to have declined by 9.2 per cent during the March quarter compared to the December quarter. Despite the quarterly deterioration, the March 2010 quarter outcome was 24.0 per cent higher than the March 2009 quarter outcome.

For the year to March, some $497 million of new capital expenditure investment took place in the printing industry representing an increase of 38.8 per cent on the previous period's outcome.

Printing Industries National Manager for Policy and Government Affairs, Hagop Tchamkertenian, said that while economic growth was picking up at the Australian economy level, the rate of growth had slowed at the printing industry level.

"The March quarter confirms that at best growth was flat in the printing industry. This is consistent with our internal research showing industry activity levels deteriorated during the quarter.  

"The growth data combined with the sales data confirms that the printing industry is still well below the level it was at two years ago when the Global Financial Crisis started to impact," he said.

Mr Tchamkertenian said the Reserve Bank of Australia decision to keep official interest rates on hold for June was the correct decision given the sluggish growth data as well as the uncertain global economic environment.