The report shows that while advertising budgets were revised up 5.1 per cent, the 'all other' category that includes PR was down 8.9 per cent, more than any other marketing discipline.
This was a slight improvement on the drop in the previous quarter (9.3%), although not on the drop in Q4 of last year (7.1%).
The increase in advertising budget was also the smallest during the past year.
The survey showed a slightly gloomier outlook for marketing budgets across the board than at the start of the year. Overall, 23% of companies reported a reduction in overall budgets, compared with 21% in the first quarter of the year. The number who reported a rise stayed the same as in the first part of the year, at 22%.
The quarterly survey of marketing expenditure found that expectations about business outlook followed predictions about the economy.
Marketing executives’ views on their industry’s prospects dropped sharply, with a net balance from 1% to -16.8% - still an improvement on the period before Christmas, which stood at -44%.
Report author Chris Williamson, chief economist at Markit, said: 'Business confidence has taken a step back again, having perked up briefly at the start of the year, which has caused companies to review their planned spend on marketing this year.
'The focus has been on cutting back on main media advertising, direct marketing and below-the-line activities, and reallocating that money towards sales promotions and the internet, both of which are often cited as a means to quickly growing sales, especially in a downturn when customers are particularly cost conscious.’