Trinity Mirror, the publisher of the Daily Mirror and a string of regional titles, reported a further deterioration in local newspaper advertising and said that it remained cautious about the rest of the year amid worries about the state of the UK economy.

On a like-for-like basis, advertising revenues at its regional titles, including the Liverpool Echo and The Birmingham Post, fell by 5.2 per cent in March and April. The sharp fall was worse than the 4.6 per cent drop reported in January and February.

A better period of Easter bookings at the Daily Mirror and the company's other national newspapers helped these titles to perform slightly better in March and April. Advertising at the nationals, which are more dependent on display revenues, was down 2.4 per cent in March and April — compared to a decline of 3.5 per cent in January and February.

The figures, included in a trading statement timed to coincide with the company's Annual General Meeting, left the company saying that "the advertising environment [is] remaining difficult and volatile in the period since our last update at the end of February" because a slowdown in the British economy is forcing companies to "curtail marketing budgets to offset the prospect of slowing revenues".

Despite the softness in advertising, overall group revenues in the first 17 weeks of the year to April 27 were up 0.3 per cent, helped upwards by acquisitions, which offset the advertising decline.

Circulation revenues, which stem from copy sales, eased 1.2 per cent decline. The shares added 6.25p to reach 267p.

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