Sir Martin Sorrell: No sign of a “double dip” recession

Sir Martin Sorrell remains positive that there will be an advertising recovery, saying there is no sign of a “double dip” recession.

Speaking at the Cannes Lions International Advertising Festival, Sorrell said there are a number of positive signs that the market won’t fall in to a “double dip” recession, including “America biting back” and the increase in TV ad spend.

“We have seen nothing that indicates [a double dip recession] but I would say that I have two concerns,”  Sorrell said. “Is there [a potential] Eurozone contagion, and in the USA next year given [George] Bush tax cuts disappear.”

“An expression of that concern is at the G8 where Obama is saying keep the fiscal stimulus packages in place and Merkel [the German chancellor] is saying withdraw,” he added.

In terms of WPP’s performance, Sorrell said there has been “sequential improvement in the first five months [of the year]”.  The company posted around a 5% year on year revenue increase in April and May.

Sorrell was also quick to discuss George Osborne’s emergency budget, saying he had two problems with it – one being the 28% rise in capital gains tax, and the issue of UK corporation tax, which previously prompted WPP to move its business to the Republic of Ireland for tax purposes.