The Channel logo

News

By | Kelly Fiveash 17th September 2008 12:39

US tech spending growth to drop in 2009

Forrester revises forecast in eye of financial storm

IT sales in the US will take a hit from the economic turmoil currently rumbling through Wall Street in 2009, according to research firm Forrester.

The company revised its predictions yesterday on the same day that computer maker Dell admitted it had been hit hard by "soft" sales.

Forrester now says that year-over-year growth in sales of computers, software and outsourcing services will slow drastically next year, while tech spending growth is still expected to spike in 2008.

Echoing Dell’s comments yesterday about a “softening in global end-user demand”, the research house said businesses will tighten their belts towards the end of this year and the start of 2009. The result: Tech spending will soften with Forrester forecasting an increase next year of 6.1 per cent reaching $606bn, down significantly from its previous 9.4 per cent prediction.

However, the firm has jacked up IT spending in the US for the remainder of 2008 - it now says the market will grow 5.4 per cent hitting $572bn. Back in May it predicted growth of 3.4 per cent.

Since then global economic woe has deepened. On Monday America's financial institutions were sent reeling, after the country's fourth-largest investment bank, Lehman Brothers Holdings, filed for bankruptcy. ®

alert Send corrections

Opinion

Lightning

Jack Clark

Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Microsoft CEO Satya Nadella
ARA_LIbertad

Chris Mellor

Elliott Management sinks its teeth into retiring godhead

Features

Failure to crack next-gen semiconductors threatens to set back humanity
SMEs get lip service - what they need is dinner at the Club
SAP Match Insights
Vorsprung durch grossendatatechnik, as we like to say in Germany
Inside the Google Lab where surgeons prepare the human/dog experiment
Big Blue exec tells El Reg what to keep an eye on