• Bloomberg, Wednesday, June 25, 2008 10:15 AM

WPP says sales growth slowed in the first five months of the year as business in Western Europe lagged behind other regions. As a result, the stock had its biggest drop in two months.

Sales climbed 4.5% compared to 5.2% in growth during the same period last year. Analysts expected growth of 4.9% this year. Advertising spending in Asia, Latin America, Africa and Eastern Europe grew faster than other areas, as soaring energy prices sapped households' purchasing power.

"WPP is doing the right things, but the economic climate is unfavorable for advertising companies,'' says Stephen Pope, chief strategist at Cantor Fitzgerald Europe. WPP's stock has lost 23% this year

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