However, in the coming months the UK and US advertising markets face a tough time while he sees improvement in the rest of Western Europe and particularly France and Germany.
"The biggest risks of a shower could be the US, with the consumer coming under pressure and inflation rising or continued tough conditions in Western Europe," Sorrell said.
His predictions for the coming year for the UK market are in line with falling expenditure in the latter half of 2006. Adspend fell by 2.3% in real terms in the third quarter of 2005 compared with the same period in 2004.
While in real terms TV advertising experienced a modest 0.8% hike and outdoor increased by 1.6%, internet advertising continued to demonstrate its massive capacity for growth.
While there is immediate trouble ahead, Sorrell is optimistic looking forward to the coming quadrennial events of the Olympics in China, US presidential elections and European Football Championships.
In an interview in the Independent he said that the Olympic Games in Beijing are not just a sporting occasion, but a political, social and economic event.
"The Olympic Games in Beijing is not just a sporting occasion, it's a political, social and economic occasion and will mark, in our view, the year the Chinese economy becomes the second-largest advertising market in the world," Sorrell said.
Separately WPP has bought US marketing and interactive agency Bridge Worldwide, which will become part of direct marketing network Wunderman. Bridge specialises in Fortune 100 consumer packaged goods and healthcare.
Founded in 1979 and based in Cincinnati, Ohio, Bridge is a top-40 interactive agency, employing 120 people. The agency has built consumer relationships for some of the world's best known brands including Procter & Gamble and other leading multinational companies.
Bridge's audited revenues for the year ended December 31 2004 were $10.2m with net assets at completion of $1.8m.
The acquisition of Bridge enhances Wunderman's online and healthcare expertise and continues WPP's strategy of developing its networks in fast growing markets and sectors.
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