Marketing budgets fell towards end of 2009
The latest Bellwether report has cast doubt on the confidence of UK businesses in the UK economy. The survey, which is well respected in the marketplace, confirms that the final quarter of 2009 saw marketing budgets across the UK fall to a two-year low. This would seem to be at odds with hopes that the UK economy has left the recession behind in the final quarter of 2009 and moved back onto the growth path. So what does this mean?
There is no doubt that marketing budgets will lag any recovery in the UK economy with businesses unwilling or unable to invest significantly until they see an upturn in business turnover. However, the fact that 25% of companies reduced their marketing budgets in the final quarter of 2009 against just 18% who increased their investment is a concern. Weak balance sheets will obviously have an impact upon future investment because many companies have been hard hit by the downturn and need to consolidate and replenish their coffers.
It is worth monitoring comments from the likes of WPP, one of the largest advertising agencies in the world, to see signs of recovery in marketing spend and business investment. As we approach a potential upturn in the UK economy it seems that many business leaders are becoming uncertain, concerned and nervous.
Share this..
Related stories
Shoppers flock to the high street
Retail sales figures in the UK have been seesawing for sometime although yesterday saw the biggest attack on the UK high street by consumers for some time. While the likes of Marks & Spencer and John Lewis remain closed on Christmas Day, all of the major retail outlets in the UK were open on Boxing Day hoping to grab the last of the festive spirit. However, despite the fact the UK is currently in...
Read MoreWhy is the UK economy still struggling?
Today we saw Denmark leave recession in the third quarter, something which has again highlighted the dire plight of the UK economy. When you also consider that the revised figure for the third quarter of 2009 in the UK was a reduction of 0.2% in the economy this does not reflect well against a 0.6% rise in the US. So why is the UK struggling so badly? In order to appreciate why the UK economy i...
Read MoreAlistair Darling is confident the UK has left the session, again!
Yet again Alistair Darling has suggested that the UK economy has left the recession behind and is now moving back towards a phase of economic growth. However, until we see the figures for the fourth quarter of 2009 many people are still sceptical because of past disappointments regarding economic data. Even if it looks, on the surface, as if the UK has pulled out of recession we do need to see col...
Read MoreMatalan announces impressive Christmas trade
January 2010 Matalan, the out-of-town discount retailer, has today issued a statement regarding Christmas trade showing an increase of 13.7% in sales. This comes at a time when founder John Hargreaves is looking to offload the business for £1.5 billion and would appear to be in the final throes of agreeing a sale. While Matalan has often attracted controversial headlines it is worth rememberin...
Read MoreAre we nearing the end of cheap air travel?
Over the last 20 years we have seen a massive increase in air travel in the UK, after the creation and the massive growth seen in the budget airline industry. While the budget airline industry is not a recent phenomenon, there is no doubt that growth seen over the last 20 years in the UK has been amazing to say the least - and often encouraged by the UK authorities. So is this the end of cheap air...
Read More