Daily Research News Online

The global MR industry's daily paper since 2000

UK Research Budgets See 'Marked Decline' in Q3

October 22 2020

UK market research budgets experienced another 'marked decline' in the third quarter - the second sharpest since data collection for this category started in the final quarter of 2012 - according to the latest IPA Bellwether Report.

IPA Bellwether Shows Economic Impact of Covid ResponseThe survey of around 300 UK-based companies found some 42.2% of respondents reporting a decline in third quarter MR budgets compared with the previous three months; with just 9.6% reporting an increase. In contrast, at the pre-pandemic beginning of the 2020/21 financial year, only -0.6% of respondents anticipated a reduction in this area.

During Q3, the Report said total marketing budgets had continued to 'contract sharply' amid ongoing Covid-19 restrictions, albeit at a softer rate of decline than in Q2 when many businesses were either temporarily closed or operating at reduced capacity. In Q3, a net balance of -41.0% of panellists saw their marketing budgets cut (and improvement from -50.7% in Q2); and more than half of respondents (52.6%) recorded a decrease in budgets from three months ago, compared with the 11.6% who saw an increase.

Sentiment towards both own-company and industry-wide financial prospects remained in negative territory during the third quarter. This was reflected by a net balance of -31.3% of firms that were downbeat, with only 16.8% of firms reporting an optimistic view, compared to exactly 48% pessimistic. When reporting on own-company financial prospects, firms were also pessimistic during the third quarter. Just 30.7% of panellists were more optimistic compared to three months ago, while 34.6% had a more negative view on financial prospects for their companies.

Bellwether authors IHS Markit are forecasting steep declines for a number of key economic indicators during 2020 - including a -11.2% contraction in GDP during 2020 as a whole; a -13.2% reduction in consumer spending; and a -20.0% decline in business investment. However, IHS Markit says it anticipates a 'robust recovery' in economic conditions during 2021, equating to a +4.6% expansion in GDP. Eliot Kerr, Economist at IHS Markit and author of the Bellwether Report, adds: 'Looking forward, if the UK can avoid another large-scale coronavirus outbreak and achieve a smooth exit from the European Union, we should see an improvement in economic conditions as firms learn how to better operate in this new business environment'.

Web sites: www.ipa.co.uk and www.markit.com .

All articles 2006-20 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

Select a region below...
View all recent news
for UK
UK
USA
View all recent news
for USA
View all recent news
for Asia
Asia
Australia
View all recent news
for Australia

REGISTER FOR NEWS EMAILS

To receive (free) news headlines by email, please register online