The effects of the U.S. economic slowdown are starting to be felt in Europe, Asia and Latin America, said WPP Group's Chairman-CEO Martin Sorrell. Speaking at the company's annual meeting in London, Mr. Sorrell said revenue growth has been affected by "the U.S. business-to-business recession, which started in the fourth quarter."
WPP's worldwide revenue grew 62% during the first five months. But the growth was mainly due to the acquisition of Young & Rubicam; adjusted to exclude acquisitions and currency effects, the five-month revenue grew only 4% during the first five months. That's less than a third of WPP's 15% growth rate in 2000.
Advertising and media revenue grew 59%, information consultancy grew 15%, public relations was up 109% and marketing service -- including branding, health care and specialist communications -- grew 85%.