The Bellwether survey, which was published on Monday, has revealed that due to the fears of economy worsening, UK marketing executives have cut their budgets for the second quarter running. Also, the survey reports (that have been produced jointly by the Institute of Practitioners in Advertising and BDO) have shown that the business confidence levels of the marketing executives have fallen to a two-year low this time.

A slash has been cited by the marketing executives in their budgets in the first three months of 2011, reasons behind being the public sector spending cuts and rapidly rising cost pressures. The quarterly Bellwether survey has also confirmed that 25% UK companies have cut their budgets in the first three months of the year.

Regarding the situation, Nicola Mendelsohn, President of the IPA has said that "the latest report reflects the unsettled nature of the economy at present and hence the figures reveal a hesitancy that is not surprising. However, we must remind ourselves that this downgrade is still markedly less severe than that seen throughout 2008 and 2009”.

According to the report, this type of situation when the business confidence among marketing executives has dropped to its lowest level, has arouse for the first time since the first quarter of 2009, i.e. the period of recession.