The Week: Sorrell warns of the fragility in revenue improvements

WPP's third-quarter organic revenues have fallen by 8.7 per cent, marking an improvement on its second-quarter performance, which saw the ad giant suffer a 10.5 per cent revenue decline.

In the UK, like-for-like revenues were down 9 per cent, compared with an 8.2 per cent drop in the second quarter.

Sir Martin Sorrell, the company's chief executive, attributed the results to improved consumer confidence.

He predicted that the slowdown in revenue decline will continue into 2010, although he pointed to the fragility of the recovery, stating: "There is little doubt that consumer and corporate confidence has recovered somewhat from the panic levels of the fourth quarter of 2008 and first quarter of 2009.

"While the hearts of chief executives and chief marketing officers are stronger and their minds clearer, increased confidence is still not transferring to their cheque-writing hands."

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