Bellwether points to ‘phase of slower growth’ for UK economy

UK— The Institute of Practitioners in Advertising’s Bellwether has swung back into the negative with marketing budgets revised down in the second quarter and a warning that the UK economy is entering “a phase of slower growth”.

Res_4003124_Chris_Williamson

Almost 20% of the 300 companies surveyed said marketing spend had been adjusted downward in the April–June period, versus 15% who reported an increase – giving a net negative balance of 4.6%.

The net balance was positive last quarter at 4.5%, and Bellwether author Chris Williamson – an economist at financial information company Markit – said it was “disappointing” that the sector had failed to build on the return to growth seen at the start of 2010 after two-and-a-half years of decline.

“[This] highlights the fragility of the UK economic recovery,” said Williamson. “Companies are exercising increased caution in their expenditure in the face of likely slower economic growth in the second half of the year.”

Sales promotion budgets were the most widely cut in Q2, according to the Bellwether, while media spend and the ‘all other’ category – which encompasses research, PR and events – was also down, as it was in Q1.

Internet, search and direct marketing budgets were up on balance, and on a further positive note, Williamson said: “It is encouraging to see that marketing spend is still set to increase for the year as a whole compared to 2009, albeit to a lesser extent than signalled in the first quarter.”

Andy Viner, head of media for the Bellwether’s co-sponsor, the accountancy firm BDO, said: “Corporates remain focused on cost control against a backdrop of the risk of a double dip [recession].”

We hope you enjoyed this article.
Research Live is published by MRS.

The Market Research Society (MRS) exists to promote and protect the research sector, showcasing how research delivers impact for businesses and government.

Members of MRS enjoy many benefits including tailoured policy guidance, discounts on training and conferences, and access to member-only content.

For example, there's an archive of winning case studies from over a decade of MRS Awards.

Find out more about the benefits of joining MRS here.

0 Comments

Display name

Email

Join the discussion

UK

Newsletter
Stay connected with the latest insights and trends...
Sign Up
Latest From MRS

Our latest training courses

Our new 2025 training programme is now launched as part of the development offered within the MRS Global Insight Academy

See all training

Specialist conferences

Our one-day conferences cover topics including CX and UX, Semiotics, B2B, Finance, AI and Leaders' Forums.

See all conferences

MRS reports on AI

MRS has published a three-part series on how generative AI is impacting the research sector, including synthetic respondents and challenges to adoption.

See the reports

Progress faster...
with MRS 
membership

Mentoring

CPD/recognition

Webinars

Codeline

Discounts