AUKLAND, NZ: "The economy seems to be defying gravity," opines David Walden, president of New Zealand's Communication Agencies Association. His comment refers to a bullish report on the nation's ad industry despite indications of a weakening economy.

The annual study by recruitment company Aquent, said a severe shortage of specialist staff is slowing development in the advertising sector. Of the 115 Auckland agencies and media companies surveyed, almost three-quarters expect revenues to rise this year.

However, this is down on last year's 93% and agencies say clients are increasingly opting for project-by-project work, instead of committing a full-year advertising and marketing budget.

Seven per cent of respondents forecast a drop in revenue, while 20% expect no change.

Data sourced from The New Zealand Herald; additional content by WARC staff