A system for processing halftone image data in digital format. The image data is electronically screened to provide a binary output suitable for storage or printing, the image data being processed in discrete blocks or cells. The error between actual and printed average gray values of each image cell processed is determined and the electronic screen thresholds are modified in accordance with such error (if any) prior to processing the next image cell. At the beginning of the aforesaid process and at the beginning of processing each line, the error is set at zero.