Speaking at the World Economics Forum in Davos, Sir Martin said that the future after the US Presidential campaign was uncertain.
"We've got heavy deficit spending in the United States, the US currency is under pressure pretty much as a result. I don't think it's likely the administration would want to do anything in front of an election," he said.
However, the chief executive of the WPP Group said that the company's clients appeared to be positive about business prospects this year.
Earlier this week, the Bellwether Report predicted an upbeat year for the advertising sector because corporate profitability had improved in the US at the end of 2003.
Sir Martin has long been predicting a recovery in 2004, citing the Athens Olympics, European football championships and US Presidential elections as contributing factors. His predictions on the state of the advertising market are widely influential in the industry.
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