In a statement to the London Stock Exchange, the Daily Mirror publisher said advertising revenues had fallen by 4.3% in March and April across the group.

The statement said: "The outlook for the UK economy remains uncertain with the ongoing adverse implications of inflationary cost pressures, in particular energy and essential food items, and the wider implications of the credit crunch.

"These market conditions are adversely impacting consumer confidence and spending, with the effect that businesses are curtailing marketing budgets to offset the prospect of slowing revenues."