oncern for the US economy has prompted one of the world�s leading media companies to scale back its forecast for the US and global advertising growth during 2005. Carat, a unit of US-based Aegis, recently cut its September forecast of the US advertising spending growth from 4.8 per cent to 4.5 per cent in 2005. It lowered its global forecast from 5 per cent to 4.9 per cent. Carat said it took the action even though the world was experiencing a "solid" recovery in advertising spending. The move thus showed how worried marketing executives have become over the economic health of the US.

As recently as last month, leading forecasters such as Zenith Optimedia and Universal McCann were raising their forecasts for global advertising spending this year. Carat said that the potential causes for concern in 2005 related to oil price, the weakness of the dollar and the US current account deficit.... more