It seems we’ve been talking about the impact of a sluggish economy on IT spending since forever, but the fact remains that uncertainties surrounding the prospects for an upturn in global economic growth remain the major retardants of IT spending growth. This uncertainty has engendered the pessimistic business and consumer sentiment in evidence throughout much of the world.
For the year just ended, we have lowered our expectations for dollar-valued IT spending growth from 1.7% to 1.2%, which reflects a significant reduction in the devices forecast driven by a sharper-than-expected slowdown in the PC market.
Looking ahead to this year, much of the uncertainty surrounding the US and European economies has dissipated (at least for now) and we expect a modest acceleration in IT spending growth in 2013. Indeed, we have revised 2013 growth projections upward from 3.8% last quarter to 4.2% this quarter. However, much of this increase results from projected gains in the value of foreign currencies versus the dollar.
Beyond 2013, with the prospect of a dramatic improvement in the global economy unlikely, our forecast for spending growth remains largely unchanged at a compound annual rate of 3.9% from 2013 through 2106.
For more details on the oultlook for IT spending: http://www.gartner.com/technology/research/it-spending-forecast/
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