NEWS20 February 2012
UK— Research professionals are predicting slower growth this year than they were last year, with forecasts revised down from 4.3% to 4%, according to the results of RSM’s latest State of the Industry survey.
Growth predictions made in the April 2011 wave of the survey have already been shown to be overly optimistic, with reported growth for the 12 months to December pegged at 2.9% – although this figure was up on the 2.2% reported for the 12 months to April 2011.
RSM suggested “confidence is falling” within the sector. Only 35% of the 238 respondents said they felt positive about the sector, 38% were neutral and 27% were negative.
Smaller agencies – those with up to four employees – “continue to experience and expect a more challenging trading environment”, said RSM, with 47%reporting decreased revenue/budget over the last 12 months and only 29% expecting revenue to rise over the next year.
The full results of the RSM survey, wave 11, are due to be released shortly.