Sunday, February 10, 2008

IT Spending Forecasts Cut

by Calculated Risk on 2/10/2008 07:31:00 PM

The Financial Times reports: IT spending forecasts cut on recession fears

Global spending on IT goods and services is expected to grow ... 6 per cent ... according to Forrester Research ... This represents a significant slowdown from 12 per cent growth last year.
“Our forecast is premised on a mild recession in the US economy in the first two or three quarters of 2008, caused by a shrinking housing sector and tapped-out consumers reining in their purchases due to higher interest rates, energy costs and consumer debt services. Anecdotally, we are hearing that this is beginning to filter through to chief information officers, and it is clear the level of caution is rising.” [Andrew Bartels, author of the Forrester report said]
There are three main areas of investment: residential (in a depression), non-residential structures (there is strong evidence of an imminent slowdown) and equipment and sofware. According to Bartels, he is hearing stories of rising caution among CIOs; not good news for investment or the economy.