* April, May tougher for trading than Q1
* Clients more confident, but no increased spending yet
* May was not as good as April in China
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By Cyril Altmeyer
CANNES, France, June 25 (Reuters) - Clients are becoming more confident but this has yet to result in increased advertising spending, the chief executive of British advertising group WPP said on Thursday.
April and May have been tougher for business than the first quarter, especially in Western Europe, Martin Sorrell, who heads the world's largest advertising group by revenue, told Reuters.
"Today CEOs are more confident. But that's in the head and in the heart. It has not extended to them writing checks," he said on the sidelines of the Cannes Lions 2009 ad festival.
WPP, whose advertising agencies include Ogilvy & Mather and Young & Rubicam, competes for budgets with the likes of France's Publicis or Omnicom of the United States.
Earlier this month, WPP said like-for-like revenue fell 6.7 percent in the first four months of the year, compared to a 5.8 percent fall in the first quarter.
Sorrell did not give indications for June on Thursday.
To counter the fall in revenue, WPP's headcount fell by almost 4,300 people or 3.7 percent in the four-month period, with over half leaving on a voluntary basis.
Headcount would "match what happens on revenue", Sorrell, said, when quizzed about the rest of the year.
A DIFFICULT YEAR
In April, Sorrell said WPP would not meet its full-year forecasts as firms cut marketing budgets amid a global downturn and on Thursday did not discuss financial goals.
Sorrell, who in May had predicted a "recovery of sorts" in global markets in 2010, said "2009 as a whole will be a difficult year".
"The first half is very difficult, the second half is looking a little bit better. That is more cosmetic than real because of the comparatives."
"Next year will look even better because the comparatives are even easier, but the underlying tone is still going to be difficult," he added.
Trading conditions remained "tough" in the United States while Britain continued "to be relatively less negative" than France, Germany and Spain, he said, adding "If anything it got tougher in Western Europe in April and May."
Signs of recovery were more likely to be found in Asia than than Western Europe.
"There was a recovery, which was interesting in China in April but in May it was not as good ... We are going to depend a lot on what happens in China."
According to a new forecast by WPP's GroupM released on Wednesday, global advertising spend is expected to drop 5.5 percent in 2009, more than previously thought, before a mild recovery begins in 2010. Its previous forecast in March put the 2009 decline at 4.4 percent.
GroupM, which acts as the parent company to the WPP media agencies, said the BRIC nations of Brazil, Russia, India and China were set to lead the recovery. (Reporting by Cyril Altmeyer, writing by Dominique Vidalon; editing by Elaine Hardcastle)