A bad advert for growth

A household spending squeeze wiped £2billion off the value of the world’s largest advertising firm yesterday.

Shares in industry giant WPP crashed nearly 11% – the biggest drop for 17 years – after it revealed slowing sales.

The fall in trade was driven by firms that make consumer goods cutting back.

Unilever, which owns Flora, Dove and Magnum ice cream, and one of WPP’s biggest customers, is reducing the number of ads it makes by 30%.

WPP is now predicting sales growth of 1% at best, compared to a previously forecast 2%, putting it on course for its worst year since the 2009 financial crisis.

WPP boss Sir Martin Sorrell said: “In the last year or so, growth has become even more difficult to find.

“We have to weather the storm.”