Ad budgets cut at fastest rate since 9/11

13/07/2008 23:42

LONDON (Reuters) - Marketing budgets were cut for the third consecutive quarter and the rate of decline is "gathering to a pace not seen since the immediate aftermath of the 9/11 terrorist attacks," The Financial Times said.

The newspaper, citing the Institute of Practitioners in Advertising’s Bellwether Report, said on its Web site that only 15 percent of respondents had reported an increase in total marketing budgets in the second quarter of the year, while 27 percent reported a decrease.

"The fact that it is as bad as 9/11 is very worrying because that was a downturn associated with a very dramatic shock," the newspaper quoted Chris Williams of Markit Economics as saying.

"What we’re seeing now is a more broad-based, fundamental weakening in demand in the economy as a whole."

The report, which is seen as an indicator of business confidence, is due out on Monday morning.