Forrester: IT spend to return in Q4 - PC Retail

Forrester: IT spend to return in Q4

Businesses expected to start procurement again later this year
Author:
Publish date:
Social count:
0
49_CityStreetScene.jpg

Spending on technology is predicted to increase later this year, as procurement programmes are rolled out and consumer fears calm down.

According to Forrester Research, while purchases are expected to continue declining for the next couple of quarters, its figures suggest that by the fourth quarter and into 2010 the market will return to growth.

The latest quarterly report warned that spending was expected to drop by a further 5.1 per cent in US IT spend, compared with the 3.1 per cent forecast earlier this year.

"While Q1 2009 saw a scary drop in purchases in the US tech market, ironically that is good news for the long run and we expect to see a stronger rebound sooner," said Forrester Research vice president and principal analyst, Andrew Bartels.

"The big drops are not precursors to further declines; rather, we think they are evidence of a temporary pause in US tech purchases, which we expect to start recovering in Q4 as businesses realise that they overreacted in the first quarter."

The company also expects sales to improve in the UK next year. "We also expect that tech markets in Europe and Asia will start to recover in the first half of 2010."

Related