-Marketers in the Americas have the most upbeat outlook
-Global trading conditions hit a low point in July but Remain positive
-Staffing levels are still increasing, but the rate of recruitment slows once again
Marketing budgets were cut again in July, data from Warc’s latest Global Marketing Index (GMI) show. Despite this latest monthly drop, conditions have not worsened since last month: the July index shows a reading of 47.5, largely stable from June’s 47.3.
But the global index masks underlying differences in sentiment by Region. Europe is acting as a drag on global budgets: the index for European marketing budgets dropped 1.8 points this month to 42.3. By contrast, marketing budgets in both the Americas and Asia Pacific increased, recording 52.3 and 50.8 respectively.
The GMI, launched in October 2011, provides a unique monthly indicator of the state of the global marketing industry, by tracking current conditions among marketers. A GMI reading of 50 indicates no change, and a reading of over 60 indicates rapid growth.
The global headline GMI measure – which combines readings for trading conditions and staffing levels alongside marketing budgets – dropped to 51.3 in July. This represents the lowest reading since November 2011 (51.1) and the third successive month of decline.
On this headline GMI metric, the Americas (56.2) and Asia Pacific (53.0) show growth, but for European marketers the outlook is negative (48.1)
The index for global trading conditions remains positive in July on 51.9, but this represents a 2.2 point drop compared with last month. Business conditions deteriorated most severely in Europe (47.9), while readings for the Americas (55.9) and Asia Pacific (54.5) showed conditions to be generally improving.
The index of staffing levels recorded a value of 54.6 in July. The sharpest increases in recruitment are occurring in the Americas (60.5)
Commenting on the July 2012 GMI results. Suzy Young, Data Editor at Warc, said: “The crisis in the eurozone is impacting on the region’s marketers, with both marketing budgets and general trading conditions now in decline. The outlook for the Americas and Asia Pacific is more positive and budgets are rising.”
Warc is recruiting for the Global Marketing Index panel. Please refer colleagues and contacts to: http://www.warc.com/gmi