Rate of advertising decline is slowing
While it would be wrong to say that the UK advertising market has in any way shape or form recovered, there are signs that the slowdown may be reducing in pace. The Daily Mail and General Trust (DMGT) today reported a 12% decline in revenues in the quarter ended June 2009 against a 23% fall in the previous quarter. Even though business is still under severe pressure, cost-cutting which was implemented earlier this year and in 2008 is starting to have an impact.
Trading conditions on the whole are still fairly weak but the reduction in the rate of fall in advertising revenues has been taken by some analysts to be a positive note and something which, when added to other features of late, seems to be indicating that the UK is on the verge of a recovery. Whether this potential recovery happens next month, next year or the year after is very much open to debate but there are signs that the base is forming.
However, for companies such as DMGT the recovery cannot come quickly enough as cost-cutting measures will reduce the pressure in the short-term but ultimately business needs to return to somewhere near former levels.
Share this..
Related stories
Alistair Darling threatens to strip Bank of England of power
The dramatic fallout between the UK government, Mervyn King and the Bank of England has been taken to a new level today with news Alistair Darling, the Chancellor of the Exchequer, is contemplating stripping the Bank of England of key regulatory powers. This is a serious development because the Bank of England has been central to the UK financial system and regulatory system for hundreds of years....
Read MoreOFT hits construction sector with fines
As we covered in one of our articles yesterday, the Office of Fair Trading (OFT) has today issued a report into an alleged cartel in the construction industry which was rumoured to involve over 100 different companies. The report confirms evidence that prices were rigged during the tender process with many parties agreeing to introduce higher offers to mask the real cost of the project in question...
Read MoreHome purchase mortgages double in 12 months
The British Bankers Association (BBA) has today confirmed that 42,238 mortgages were approved in October against 42,073 the previous month. These mortgages are specifically house purchase mortgages, which do not include redemptions and repayments, and show a 98% increase compared to the same period last year. So what exactly does this mean? While there is no doubt that the UK mortgage market an...
Read MoreDo You Feel The Feel Good Factor Now?
As the UK Olympic team continue to go from strength to strength in Beijing maybe we all underestimated the feel good factor which comes with such success for your home country overseas. As the gold medals continue to reign down the press is full of good news, the TV pictures are heart warming and suddenly our minds are taken off what is and continues to be a terrible year. Are those who claim mo...
Read MoreWHO increases risk assessment for swine flu pandemic
The World Health Organisation (WHO) has today increased the level of risk associated with a potential swine flu pandemic from level four to level five. This is just one little short of the full pandemic risk with a feeling that this is inevitable in the short to medium term. The impact on the worldwide economy would be enormous as borders are closed, travel restrictions are imposed and businesses...
Read More