LONDON, Aug 5 Reuters WPP upgraded its annual net sales outlook on Friday thanks to higher client spending, but shares in the world39;s largest advertising group slid nearly 8 as the news failed to excite investors expecting stronger forecasts.

The results come as investors and analysts look to gauge how advertising will perform against a backdrop of high inflation and slowing global economic growth.

Shares in WPP fell 7.8 to 822.60 pence on the London Stock Exchange by 0845 GMT. The stock has climbed 17.2 over the past month, compared with a 6 advance for the FTSE 100.

WPP now expects likeforlike net sales to grow 67 in 2022, up from an already upgraded forecast of 5.56.5. It left its headline operating margin outlook unchanged.

Analysts and traders said WPP39;s results and outlook, while strong, failed to reflect the momentum seen in much more upbeat results from rival ad group Publicis last month.

Market participants were unimpressed … because they were somewhat expecting more for such a firm with strong prospects, said Stephane Ekolo, an equity strategist at Tradition.

Additionally, the fact that it did not change its margin outlook while raising sales might have raised some red flags, especially when taking into account that rival Publicis did.

Last month, France39;s Publicis raised its fullyear guidance for organic growth and operating profit margin after a solid performance across all regions. 

Britain39;s WPP said likeforlike net sales from the…