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!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags it strategyCIO rolehardware systemssoftwareIT managementForrester Research

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

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?