UK Emerges from Recession by a Whisker

January 26, 2010 should have been a red letter day for the UK. At last: The official announcement that the longest, deepest recession since the second world war was at an end. But the growth registered by the economy in the last quarter of 2009 was decidedly underwhelming, at 0.1%. Moreover, fears persist that the country may succumb to a “double dip” recession—and slide into negative growth again this year.

The continuing financial squeeze prolongs pressure on advertisers and marketers to watch every penny. In practice, that should reinforce the importance and momentum of online spending in the UK, while traditional media struggle. GroupM, for example, has forecast that only Internet and mobile ad spending will increase in 2010.

There are hopes that consumer confidence will rise as spring arrives, and help to ensure the recovery stays on track. Confidence levels climbed substantially between a record low in January 2009 and the end of the year, according to the Nationwide Building Society.  But expectations are still fragile, said Nationwide, and most consumers will need encouragement to spend.