UK market research growth slowed in the second half of 2002 as ad hoc business declined, according to Merrill Lynch. Nevertheless, the broker is still expecting a 2.5% growth for the full year.
Moving into 2003, growth is expected to remain positive – at around 2.5% again – despite increasing pressure on ad hoc business. This is because continuous business should hold up, say analysts.
Market research companies are considered to fare better than advertising-reliant business in a downturn. Merrill says that this is still the case, although the sector has proven less resilient than had been expected, given its strength in previous downturns. This could be because the current slump was more corporate profitability/B2B-led than other consumer-led downturns, say analysts.
