The PRCA’s third quarter Trends Barometer revealed PR agencies were optimistic, with 37% of respondents feeling more optimistic than in the previous quarter about their consultancy, and 40% feeling the same.
However, only 14% were feeling more optimistic about the industry, with 53% feeling the same as they did in the last quarter. 33% said they felt less optimistic than they did in the last quarter.
Agencies also reported a 25% decrease in over-servicing, and client budgets increasing by 6%.
The majority of respondents believed staff numbers (63%), graduate recruitment (73%) and the use of freelancers (53%) would remain unchanged.
PRCA chief executive Francis Ingham said: ‘There is much to take heart from. 63% of consultancies are busy or very busy with new business, a third are seeing over-servicing levels decrease, and more consultancies expect to be hiring new staff than expect to lose them.
‘There is, though, a clear area of concern. When asked about other people's prospects, a discouraging and threatening one is clear. From speaking with PRCA members, there is a palpable lack of confidence in the country's economic prospects, and that sense is affecting business decisions.
‘The obvious danger is that we talk ourselves into a second round of recession.’
The PRCA polled 60 members of its leaders panel.
