printing industry news
The graph shows that the growth in spending on advertising has been rising at a healthy and increasing rate during the last months of last year. The growth was at a cyclical trough in the middle quarters of 2000, but has since then been moving upward quite strongly.
The year-on-year growth in total adspend was 1.2% and -4.6% during the second and third quarters, respectively. In the three months of September-November, this growth shot up to 13.9%. The year-on-year growth in printing adspend bottomed in the third quarter of last year at 3.5%, but in the three months of September-November, this growth moved up to 11.5%. As is typical, advertising in newspapers and consumer magazines was the most buoyant in the last few months of last year. The share of printing in total adspend averaged 41.8% during the September-November period.
It is likely that adspend growth will drop in the first quarter of 2001, simply because it will be compared with a base of high growth in the first quarter of 2000. Growth during the middle quarters should, however, be quite healthy.
2. FUNDAMENTALS REMAIN FAVOURABLE
Economic growth is expected to be about 3% this year. This together with low interest rates and better profits will result in healthy growth in adspend during 2001 as a whole.
