PR consultants to feel recession pain: US study

According to an USC Annenberg School of Communication study released today 

Of the 58% of responding organizations who reported working with one or more outside agencies, 69% indicated that they have already reduced, or plan to reduce, the fees paid to those agencies. Those that have already reduced agency compensation have done so by an average of 28%, while those anticipating cuts expect them to amount to an average of 22%.

These figures, in combination with the data on the staffing situation, strongly suggest that these organizations are addressing budget cuts by reducing fees paid to their agencies and/or limiting or reducing what they pay their employees, with internal staff reductions seen as a last resort.  

Yes, tragic, I know.