Growth in event budgets has slowed, says Bellwether

This has been highlighted by a fall in the respective net balance to +4.9% in quarter one 2017, down from +12.3% in the previous quarter, according to the Bellwether Report released today (19 April).

Image @istockphoto.com
Image @istockphoto.com

The rate at which events budgets increased was the slowest seen by the survey since the end of 2015, although growth has remained in 'comfortable territory'. While nearly 21% of those surveyed indicated events budgets growth, around 16% indicated a contraction.

Upward revisions to budgets are widely expected to be sustained into the coming financial year. Final data showed that a net balance of +10.6% are predicting growth in 2017/2018.

Paul Smith, senior economist at IHS Markit and author of the Bellwether Report said: "The Q1 2017 Bellwether survey paints a picture of a solidly growing UK economy, with companies continuing to show a willingness to commit increased resources to marketing and capitalise on current positive sales trends.

"Given the prevailing backdrop of Brexit-related economic uncertainties, a key question is whether the resilience in spend shown post referendum can be maintained. At present, marketers seem confident, with both sentiment around their own company financial prospects and budgets for the year ahead remaining inside positive territory.

"But perhaps reflective of the relative limbo we find ourselves in ahead of the start of negotiations between Britain and the EU, degrees of confidence remain historically low and panellists continue to note plenty of threats to the outlook."

Lesley Mason, client services director at FreemanXP EMEA commented: "We saw an extremely busy start to the year so I don’t feel that there is less investment in our sector on the whole, however I do see the Q1 2017 Bellwether figures as a reaction to the uncertainty over the global economic outlook, which most notably came to a head at the end of 2016. Many brands are now choosing to manage their budgets on a quarterly basis as a result of this, as it allows them to react to market changes or competitor activity very quickly."

 

See more:

Event budgets grow 5.7%, says Bellwether report

Event budgets on the rise, says IPA Bellwether Report

UK meetings industry 'worth £21.6bn'

• For more news, in-depth features and case studies, sign up to C&IT Magazine's daily Newstracker here

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Register now
Already registered?
Sign in
What the election result means for events

What the election result means for events

Following a landslide victory for the Conservative Party in the general election, what do key industry figures think about the result?

C&IT's APAC Awards now open for entries

C&IT's APAC Awards now open for entries

Brand new this year, C&IT will recognise the very best in events in the Asia Pacific region.

Which trends do corporate event planners expect to see next year?

Which trends do corporate event planners expect to see next year?

In part nine of our State of the Industry: Corporate Report, we asked corporate event planners what trends they expect to see in 2020.

Trinity Event Solutions appoints managing director

Trinity Event Solutions appoints managing director

Jenny Harding steps into a new role after ten years at the agency, where she has also been recognised for charitable work.

Top 3 incentive trends for 2020

Top 3 incentive trends for 2020

What are the biggest luxury travel requests that incentive planners should watch next year?

Plans revealed for major new Edinburgh arena

Plans revealed for major new Edinburgh arena

The 8,000 seater indoor arena in Scottish capital is expected to include conference space and hotels.

What corporate event planners want from suppliers

What corporate event planners want from suppliers

Part eight of the State of the Industry Corporate Report asks what the most influential factors are when choosing suppliers.

Australian bushfires: 'Natural phenomena and crises are always going to happen'

Australian bushfires: 'Natural phenomena and crises are always going to happen'

Tourism Australia's Penny Lion talks about the bushfire crisis and the country's booming events industry.

Top Banana hires non-executive director

Top Banana hires non-executive director

New addition brings more than 30 years experience to the agency and will mentor and advise the leadership team.

Why there's been a surge of new hotels in Perth

Why there's been a surge of new hotels in Perth

Its pristine beachfront rivals California, with massive investment in tourism creating new hotels and jobs.

LATEST JOBS