By Simon Zekaria

LONDON--The U.K. media industry is set for its weakest growth in four years in 2016, as economic uncertainty following the country's vote to leave the European Union knocked advertisers' spending, KPMG said Wednesday.

"Post-Brexit we have seen a loss of momentum which has placed the media sector on course for its weakest calendar year of growth since 2012," the financial services company said in a report.

The U.K. voted to leave the EU in a referendum on June 23.

Advertisers reined in spending between July and September--despite spending "strongly" in the first half of 2016--with only 16% of marketers reporting a rise in advertising budgets in the third quarter.

"U.K. marketing executives reported that rising economic uncertainty had weighed heavily on post-Brexit budget setting, leading to a wait-and-see approach to spending plans," KPMG said.

Some U.K. media companies have signaled wariness over the Brexit vote.

ITV PLC, the U.K.'s largest over-the-air broadcaster by revenue and a company for whom television advertising is central, is targeting savings of 25 million pounds ($30.9 million) in 2017, in the wake of the referendum.

-Write to Simon Zekaria at

(END) Dow Jones Newswires

December 21, 2016 09:39 ET (14:39 GMT)

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