European IT spend 'will be lower'

Forrester report points finger at weakening euro
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Forrester Research has released a report predicting strong growth in IT spending in the US and Asia offset by weaker growth in Europe due to the Greek debt crisis.

The analyst said that the IT goods and services spending in the US will increase by 9.9 per cent to $564 billion, outperforming worldwide growth of 7.8 per cent. However Western and Southern Europe spending would contract 0.7 per cent in US dollar terms but grow by 4 per cent in euros, indicative of the slide in value of the euro against the US dollar.

The Greek national debt crisis and a weakening Euro will account for the negative impact on IT spending according to Forrester. The star performers will instead be Canada on 16.2 per cent, Latin America at 15.4 per cent and Asia-Pacific at 11 per cent growth predicted.

"Computer equipment and software will be the strongest categories, with PCs, peripherals, and storage equipment leading the computer category, and operating system software and applications setting the pace for software," said Forrester. 

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