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

Memristor_wafer

Chris Mellor

Execution warrant close to being signed for Fink's folly
Woman cuddles 'sly-looking' Fennec fox. Photo by Shutterstock
Cartoon of employee asking wky boss makes hium wear suspenders (while pincer through open trapdoor remains poised above his head) illustration by Cartoon resource for Shutterstock

Frank Jennings

It's not like my boss painstakingly nurtured the contacts, right?

Features

Girl and computer, photo via Shutterstock
Middle-class terror of engineering also part of problem
Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world