Agencies optimistic about prospects in Q4

Agencies are unconcerned by the immediate impact of last week's comprehensive spending review, with 90 per cent feeling positive about the final quarter of 2010, according to the quarterly Marketing Agencies Association survey.

Osborne: announced cuts
Osborne: announced cuts

The survey of MAA members, which include direct and sales promotion agencies, also revealed that 100 per cent of respondents think new-business opportunities will increase or remain steady in quarter four.

In addition, 77 per cent of agencies predict that client budgets will increase or stay the same during the final quarter. Half of those forecasting increases in client spend expect the increase to be between 10 and 20 per cent. Of the members surveyed, 80 per cent said they expect their agency staff numbers to either increase or stay the same.

Scott Knox, the managing director of the MAA, said: "Recent events have not discouraged agencies from feeling optimistic about the future. In these uncertain times, every business will be watching carefully for signs of a double-dip recession, but it is encouraging to see that it's business as usual for many marketing agencies."

Last week, the planned spending review unveiled by the Chancellor, George Osborne, revealed an average 19 per cent budget cut across all departments. Research by PricewaterhouseCoopers has since suggested that the cuts could cost the marketing industry £750 million.