PRCA reports growing budgets and new business in Q2

The PRCA's quarterly barometer of consultancy MDs reveals that budgets and new business are continuing to grow, despite gloomy national predictions.

PRCA report: industry growth is primarily due to increased client budgets
PRCA report: industry growth is primarily due to increased client budgets
Industry growth is primarily due to increased client budgets (net 16% increase), supported by high levels of new business, with 64% of new business coming from new clients.

The survey found 68% of survey respondents are either busy or very busy with new clients. However over-servicing levels (net 13% increase) remain stubbornly high, corroborated by the PRCA’s annual benchmarking figures.
 
The positive results are reflected in business confidence, with a net 37% of respondents increasingly optimistic for their consultancy’s prospects.  However, optimism for the industry in general is still not high (net 5% increase).

PRCA chief executive Francis Ingham commented: ‘For the second quarter in a row our barometer has revealed strong results as PR remains one of the great UK economic success stories of recent years.
 
‘Our client-matching service is extremely busy at the moment and it is ridiculous to suggest, as others have done, that we should stop pitching during the Olympics. Now is the time to build on our momentum, not to stop and let the recession catch up to us.’

Significantly, staff levels are set to rise (net 41% increase) with only 1% of respondents expecting to reduce their numbers. Graduate recruitment (net 10% increase) and use of freelancers (net 7% increase) are also set to rise.
 

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