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US Economic Woes to Slow Tech Spending

Researchers say the sector will continue to grow, but belts will be tightening

By Jim O'Neill,  Newser User

Posted Dec 11, 2007 11:38 AM CST
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(Newser) – Tech-spending growth, on a roll since recovering from the 2000 dot-com bust beginning in 2004, is likely to slow next year, dragged down by US economic woes and rising oil prices, reports the Wall Street Journal. Research firms say companies are likely to keep spending, but more slowly. As one CIO said, “It’s not doom and gloom.”

Spending on technology grew nearly 6% annually from 2004 through 2006, and is expected to increase 6.9% this year. Research firm IDC projects 2008 growth of 5.5% to 6%, down from an anticipated 6.6%. Analysts say growth in India and China will accelerate, but project US growth slowing to 5.2%, down from an expected 5.7%, and below 2007’s 6.4%.

Students use computers in the Virginia Tech Math Emporium in Blacksburg, Va., Thursday, April 5, 2007. (AP Photo/Steve Helber)
Students use computers in the Virginia Tech Math Emporium in Blacksburg, Va., Thursday, April 5, 2007. (AP Photo/Steve Helber)   (Associated Press)
Merck's National Business Group sales representatives Tina Hutchinson, right, and Matt Clark look at a computer with video hook-up in a work cubicle at the company's West Point, Pa. facility, Monday, Dec. 3, 2007.
Merck's National Business Group sales representatives Tina Hutchinson, right, and Matt Clark look at a computer with video hook-up in a work cubicle at the company's West Point, Pa. facility, Monday,...   (Associated Press)
Boxes of Hewlett Packard printers are stacked up at a Best Buy store in Mountain View, Calif., Thursday, Nov. 15, 2007.
Boxes of Hewlett Packard printers are stacked up at a Best Buy store in Mountain View, Calif., Thursday, Nov. 15, 2007.   (Associated Press)
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Tech leaders looking past US woes
Reuters

Tech spending growth to slow worldwide
MarketWatch

 
technology • budget • US economy • spending

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