LONDON, April 17 The number of British companies
increasing their marketing spend grew at its strongest pace in
14 years in the first quarter, signalling optimism that
Britain's recovery from recession is gaining momentum, an
industry survey showed on Thursday.
The IPA Bellwether report said a net balance of 20.4 percent
of companies registered an increase in advertising budgets in
the first quarter, against 11 percent in the fourth quarter, the
biggest rise in spending since the survey began in 2000.
The numbers add to encouraging signs of a broad-based
recovery in Britain's economy, which should return to full
capacity by mid-2018, according to Office for Budget
The report also found that around 17.2 percent of companies
saw a increase in budgets for the 2013/2014 financial year,
compared with 13.5 percent the year before, the highest reading
in seven years.
"Companies are ramping up their markets and advertising
expenditure in the face of growing optimism about the economic
outlook," said Markit economist Chris Williamson, who wrote the
"As higher marketing spend is also usually accompanied by
rising business investment and job creation, this augurs well
for economic growth to top 3 percent this year," he added.
Main media advertising budgets saw the biggest increase of
11.7 percent in the first quarter, following by internet
advertising which rose 8.5 percent. Budgets for public
relations, events and direct marketing also recorded increases.
The IPA Bellwether report was drawn up from a survey of 300
companies based in Britain.
(Reporting by Li-mei Hoang; Editing by Mark Potter)