The advertising environment remains difficult, Trinity Mirror, parent of The Birmingham Post, has warned.
Its cautious stance came as it issued an interim management statement covering the first 17 weeks of trading to April 27.
The group stated: "We continued to make steady progress throughout the period with the development of our strategy to build a growing multi-platform media business."
But it noted: "The outlook for the UK economy remains uncertain with the ongoing adverse implications of inflationary cost pressures, in particular energy and essential food items, and the wider implications of the credit crunch.
"These market conditions are adversely impacting consumer confidence and spending with the effect that businesses are curtailing marketing budgets to offset the prospect of slowing revenues. This has resulted in the advertising environment remaining difficult and volatile. Given this uncertain economic outlook we remain cautious about trading prospects."
It said management would seek "continued improvements and efficiencies to create a more robust business".
Trinity said it also continued to build digital revenues.
It went on: "Cost control and operating efficiency remain at the core of our strategic focus. At this stage the board anticipates performance for the year to be in line with expectations."
Actual group revenues increased by 0.3 per cent while underlying was down 2.7 per cent.
Actual group advertising revenues in the period fell 3.1 per cent reflecting a
decline of 3.2 per cent for January and February and three per cent for March and
April. On an underlying basis, advertising revenues have fallen by 4.3 per cent.
Trinity noted: "Month on month volatility remains and we expect this to continue for the remainder of the year."
For the Regionals division actual advertising revenue in the period was down by 3.1 per cent reflecting a decline of three per cent for January and February and one of 3.3 per cent for March and April. On an underlying basis, advertising revenues have fallen by 4.9 per cent – off 4.6 per cent for January and February and 5.2 per cent for March and April.
The actual performance by sector was display up 0.2 per cent, recruitment down 1.7 per cent, property down 6.8 per cent, and motors adrift 16.3 per cent. On an underlying basis the decline in recruitment and property advertising was 4.9 per cent and 11.5 per cent respectively.
However, within the overall picture, digital revenues have grown by 37.1 per cent with an underlying increase of 20.6 per cent.
For the Nationals division actual advertising revenues for the period fell by 2.9 per cent.
Actual group circulation revenues for the period slipped 1.2 per cent with a decline of 1.1 per cent for the Regionals and 1.3 per cent for the Nationals.
Two acquisitions were made – The Career Engineer and Rippleffect Studio for a combined
£5.1 million with a potential deferred payment of up to £3 million.