Financial Times FT.com

US online advertising blow

By Richard Waters in San Francisco

Published: October 8 2008 04:42 | Last updated: October 8 2008 04:42

Spending on online advertising in the US decelerated sharply even before the financial crisis of recent weeks, according to figures released on Tuesday, denting hopes that the main source of cash for the consumer internet economy would remain largely resilient in a recession.

The rate of growth of online shopping has also declined sharply, as pressure on disposable income has led consumers to cut back online purchases of items such as jewellery, watches and music.

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