About the Post

Author Information

Global tech outlook cut on US recession fears

(SAN FRANCISCO) Two leading technology research firms have cut global technology outlook for this year, citing the risk of a US recession.

Forrester Research Inc said it now expects global technology purchases to grow 6 per cent in dollar terms this year, down from an earlier projection of 9 per cent. It expects US purchases of technology goods and services to grow 2.8 per cent, down from a previous forecast of 4.6 per cent.

The revisions assume a mild recession in the United States in the first two to three quarters of 2008, Forrester said on Sunday. The US accounts for about a third of global technology purchases.

‘While it is by no means certain that the US economy will in fact experience a recession, the risks of one are high enough to justify a more conservative outlook,’ Forrester vice-president Andrew Bartels said.

IDC also lowered its global outlook, citing similar concerns. It said on Monday it now expects worldwide IT market growth of 5 per cent this year, down from its previous forecast of 5.5 per cent and off from 2007’s 6 per cent.

‘While there is still debate over the severity and length of a US economic slowdown, we do know that the IT market will not escape unscathed from any significant downturn,’ said Stephen Minton, vice-president of Worldwide IT Markets at IDC.

Within technology, software investment will likely do better than the average, growing 8 per cent globally in 2008 but still down from 11 per cent last year, Forrester said.


Source: Reuters (Business Times 13 Feb 08)


No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: