WPP, the world’s second-biggest advertising company, has brushed off fears about the global financial turmoil and revealed that sales growth is accelerating across the business.

Sir Martin Sorrell, the chief executive, insisted today that corporate customers were still spending and that he was confident the current liqudity crisis sparked by the US credit crunch would work its way through the system.

“Just look at our numbers," he said. "July was up nearly 8 per cent on a like-for-like basis.”

He added: “Our view is that life is determined by the political cycle which then determines the economic cycle.

“The US presidential elections are next year and I don’t think any US president will want to go to the country with anything but a strong economy.”

Pre-tax profits at WPP rose 7 per cent to £338 million in the six months to June 30, on total revenue of £2.9 billion, up nearly 8 per cent on a constant currency basis.

Like-for-like sales rose 5.3 per cent in the half-year, fuelled by a near 29 per cent rise in China.

Sir Martin said that the “most pleasing thing” was that like-for-like growth was accelerating, from 4.3 in the first quarter, to 6.3 per cent in the second, and 7.7 per cent last month.

He said: “It’s a sort of continued acceleration if one was being bullish about it.”

Shares in the group rose 7p to 687.5p after closing at their lowest level of the year last night.

Sir Martin said that there were still “significant” new business opportunities this year but signalled that 2008 was likely to be even better given the US elections, the Beijing Olympics and the Euro 2008 football championships.

However, he cautioned that 2009 was likely to be slower as the new US administration “wrestles with the country’s fiscal and trade imbalances”.

Shareholders will receive an interim dividend of 4.32p a share, a 20 per cent increase.

WPP added that it would increase share buybacks with a view to hitting a target equivalent to 4 per cent to 5 per cent of its share capital.

It bought back and cancelled £209 million of shares in the first half, equivalent to 2 per cent to 3 per cent.

Times Recommends

• Lenders face huge hit on mortgage fraud
• Mortgage rescue fund at the ready
• Zoom airline collapses and halts all flights