Sir Martin Sorrell, the chief executive of WPP, shrugged off worries about a weakening of the global economy, saying that he expected that the Beijing Olympics and the US presidential election would ensure that 2008 would be a “bumper year”.

Sir Martin was speaking as the world’s second-largest advertising and marketing group reported 5.3 per cent like-for-like growth in the first half. He said that WPP should narrowly beat last year’s 5.4 per cent organic growth rate, with 2008 better.

“It’s very early days,” he said, reflecting on the past fortnight’s turmoil in the financial markets, “but our view is that the real test will come after the US presidential election, when the winning candidate has to work out how to deal with the US trade deficit and the weak dollar.”

Until then, Sir Martin said, there was a string of sporting events, starting with the rugby World Cup next month, the European football championships in Austria and Switzerland next year, and the Beijing Olympics. He said: “We think around $1.5 billion (£757 million) will be spent by advertisers around the Olympics, over double what was spent in Sydney \, and over double what was assumed by London in its bid for 2012.”

Advertising and marketing tend to be among the first items companies cut in a downturn, and the sector typically tracks the economic cycle. However, WPP — owner of agencies such as JWT and Young & Rubicam — said that it also believed that fundamentals remained robust.

“Corporate profits are at the highest levels as a proportion of GNP for almost 50 years,” Sir Martin said, adding that the company had so far seen “no sign” of a reining-in of spending in response to the market turmoil.

Stripping out currency effects, turnover for the half year to June was £2.92 billion, up by 2 per cent. Pre-tax income was £294.1 million, ahead of last year’s £287.1 million.

Like-for-like revenue growth had been accelerating before the difficulties began, WPP said. July was up 7 per cent, and June an estimated 6 per cent, both ahead of the 5.3 per cent growth in the first six months.

That strength in spending impressed analysts, who had expected a slight easing of growth. Citigroup said that it was surprised that the company stuck to its guidance “that organic growth will be greater than 2006”. The bank had been anticipating WPP would increase turnover by 5.2 per cent rather than the implied 5.4 per cent in 2007.

WPP shares rose 2.8 per cent to 699½, relecting its slight outperformance of global rivals

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