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Forrester downgrades U.S. IT spending forecast

By Chris Kanaracus
October 15, 2010 01:16 PM ET

IDG News Service - Forrester Research is now predicting U.S. IT spending will grow 8.1% this year, a slight drop from the analyst firm's July prediction of a 9.9% uptick, according to a new report released Friday.

The firm lowered its forecast based on weaker-than-expected U.S. economic data in the second quarter and revised figures from the U.S. Department of Commerce, states the report by analysts Andrew Bartels, Christopher Mines and Chétina Muteba.

U.S. computer equipment sales are especially strong this year, with spending set to rise 19%. Software sales will jump 9.1%, with PC operating systems, application servers and enterprise process applications posting particularly healthy gains of 22.3%, 12.6% and 10.8%, respectively.

Forrester has predicted IT spending would rebound strongly this year and next due to improving macroeconomic conditions and a fresh wave of technology innovation. "The latter remains very much in place, but the former has taken some knocks," the report states.

The revised U.S. figures have brought down Forrester's global estimate of 2010 IT spending to 7% from 7.8%. Global IT spending will also grow 7% in 2011, with U.S. spending jumping 7.4%, according to the report.

The report also adds a caveat to the "still-robust" figures, noting that the "much-maligned economic stimulus program of President Obama undoubtedly contributed to these growth rates."

In a May 2009 report, Forrester estimated that stimulus spending would generate some $27 billion in revenue for vendors during that year and 2010, with two-thirds arriving in 2010.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris's e-mail address is Chris_Kanaracus@idg.com

Reprinted with permission from IDG.net. Story copyright 2014 International Data Group. All rights reserved.
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