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PRCA quarterly economic barometer shows in-house confidence weak, but employment prospects stable
London, 31 January 2011 – Today the PRCA released its inaugural in-house economic barometer, covering Q4 over 2011. It follows the Q4 consultancy barometer, released two weeks ago, which showed lower general confidence from agency MDs, but high new business activity and positive hiring intentions. The in-house economic barometer concluded:
FOR THE PERIOD 1 OCTOBER TO 31 DECEMBER WHAT HAS HAPPENED TO YOUR PR/COMMUNICATIONS BUDGET?
|
Increased significantly |
11% |
|
Increased marginally |
0% |
|
Stayed the same |
44% |
|
Decreased marginally |
33% |
|
Decreased Significantly |
11% |
Net: 33% decrease
FOR THE PERIOD 1 OCTOBER TO 31 DECEMBER WHAT HAS HAPPENED TO YOUR PR/COMMUNICATIONS CONSULTANCY SPEND?
|
Increased significantly |
0% |
|
Increased marginally |
0% |
|
Stayed the same |
56% |
|
Decreased marginally |
33% |
|
Decreased significantly |
11% |
|
Do not over-service |
0% |
Net: 44% decrease
HAS THE LAST QUARTER MADE YOU FEEL MORE OR LESS OPTIMISTIC FOR YOUR BUSINESS?
|
More optimistic |
11% |
|
The same |
44% |
|
Less optimistic |
44% |
Net: 33% decrease
HAS THE LAST QUARTER MADE YOU FEEL MORE OR LESS OPTIMISTIC FOR THE PR INDUSTRY?
|
More optimistic |
11% |
|
The same |
56% |
|
Less optimistic |
33% |
Net: 22% decrease
HOW DO YOU THINK THE GENERAL ECONOMIC CONDITION OF THE PR INDUSTRY WILL CHANGE OVER THE NEXT 12 MONTHS?
|
Improve |
11% |
|
Stay the same |
33% |
|
Get worse |
56% |
|
Don't know |
0% |
Net: 44% worsen
WHAT WILL HAPPEN TO STAFF NUMBERS IN THE NEXT QUARTER?
|
Staff numbers will increase |
11% |
|
Staff numbers will stay the same |
78% |
|
Staff numbers will decrease |
11% |
Net: no change
IN THE NEXT QUARTER WHAT WILL HAPPEN TO THE USE OF CONSULTANCIES RELATIVE TO THE PREVIOUS QUARTER?
|
Increase |
11% |
|
Decrease |
44% |
|
Stay the same |
44% |
Net 33% decrease
IN THE NEXT QUARTER WHAT WILL HAPPEN TO THE USE OF FREELANCERS RELATIVE TO THE PREVIOUS QUARTER?
|
Increase |
33% |
|
Decrease |
22% |
|
Stay the same |
44% |
Net: 11% increase
WHAT IS YOUR LOCATION?
|
London |
33% |
|
Midlands |
22% |
|
South East (excl. London) |
44% |
|
South West & Wales |
0% |
|
North West |
0% |
|
North East |
0% |
|
Yorkshire and Humberside |
0% |
|
Scotland |
0% |
|
Northern Ireland |
0% |
WHAT IS THE BIGGEST CHALLENGE YOU EXPECT TO HAVE OVER THE NEXT 12 MONTHS
|
Reduced budgets |
22% |
|
Shortage of skilled staff |
11% |
|
Increased costs |
0% |
|
Increased scope of team's responsibility |
56% |
|
Organisation's buy into PR and Comms |
11% |
|
Social Media Management |
0% |
|
Regulatory Environment |
0% |
Francis Ingham, Chief Executive of the PRCA, commented “In-house PR leaders are not immune to the general economic sentiment in the country. Confidence is weak, and budgets remain under pressure.
“There are two very positive findings, however. First employment prospects are stable; it seems reasonable to conclude that communications directors have already taken their necessary HR decisions. Secondly, while being asked to do more with less is a legitimate challenge, it reflects the fact that in the downturn, CEOs are recognising the central importance of their communications experts. Both of those are positive indicators for when the economy improves.”
-ENDS-
Notes to editors
Richard Ellis, communciations director
T: 020 7233 6026 ¦ M: 07779 102 758 ¦ E: richard.ellis@prca.org.uk
About the PRCA
Who we are: Founded in 1969, the PRCA is the professional body that represents UK PR consultancies, in-house communications teams, PR freelancers and individuals. The PRCA promotes all aspects of public relations and internal communications work, helping teams and individuals maximise the value they deliver to clients and organisations.
What we do: The Association exists to raise standards in PR and communications, providing members with industry data, facilitating the sharing of communications best practice and creating networking opportunities.
How we do it and make a difference: All PRCA members are bound by a professional charter and codes of conduct, and benefit from exceptional training. The Association also works for the greater benefit of the industry, sharing best practice and lobbying on the industry's behalf e.g. fighting the NLA's digital licence.
Who we represent: The PRCA represents many of the major consultancies in the UK, and currently has more than 250 agency members from around the world, including the majority of the top 100 UK consultancies. We also represent over 70 in-house communications teams from multinationals, UK charities and leading UK public sector organisations.
