Forrester downgrades US IT spending forecast

Obama's stimulus spending was a big boost to the still-strong growth rates

Forrester Research is now predicting U.S. IT spending to grow 8.1 percent this year, a slight drop from the analyst firm's July prediction of a 9.9 percent 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 percent. Software sales will jump 9.1 percent, with PC operating systems, application servers and enterprise process applications posting particularly healthy gains of 22.3 percent, 12.6 percent and 10.8 percent, 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 percent from 7.8 percent. Global IT spending will also grow 7 percent in 2011, with U.S. spending jumping 7.4 percent, 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 US$27 billion in revenue for vendors during that year and 2010, with two-thirds arriving in 2010.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags IT managementsoftwareForrester Researchhardware systemsit strategy

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Essentials

Brother MFC-L3745CDW Colour Laser Multifunction

Learn more >

Mobile

Exec

Sony WH-1000XM4 Wireless Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?