Direct mail printers have reported an unseasonal upturn in business that could mark the first tentative signs of the sector's emergence from the recession.

　　After a torrid year, in which a number of firms have closed, including John Blackburns, Colin Clapp and LDH Mailing, the DM sector could be on the verge of recovery.

　　Despite the summer months traditionally signalling a quiet period for UK mailing houses, a number of companies have reported an upturn over the last quarter.

　　Lance Hill, managing director of print services at 4DM Group, said: "We've seen a marked increase in activity over the last month or so following a sustained period of declining sales in the first quarter."

　　4DM's comments were echoed by Leicester-based rival GI Direct, which reported an increase in business from as far back as May.

　　GI sales director Patrick Headley said: "We made a healthy profit in July and we're getting busier in September as well, especially on the lasering."

　　Lucy Edwards, assistant managing director at Dartford-based Howard Hunt, which noticed a pick-up in business last month, added that companies that had more or less stopped marketing when the recession hit were now beginning to return.

　　She said: "There was a bit of a freeze that went on in the early-to-middle part of this year, but companies are realising that in order for them to keep their turnovers up they're going to have to get back into [DM], so we're hoping that will continue into January as well."

　　Hill agreed: "The absolute key is going to be the start of 2010 to see if these signs are genuine or if it's just a blip. We are cauitously optimistic. Hopefully these are real green shoots and hopefully they will carry on into next year."

　　However, while a mood of "cautious optimism" now pervades the sector, Hill warned that there would be more casualties going into the last quarter.

　　He said: "I think unfortunately some of the smaller operators who don't have the cash reserves will struggle and I think we'll see more casualties."

　　This was echoed by Eclipse Colour Print managing director Simon Moore, who added that despite a number of big name casualties, overcapacity was still rife in the sector.

　　"Although capacity has come out, we're still facing the same issues in terms of price competition, and I think most manufacturers would agree that while volumes are up, the revenue for that is down," he said.