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December 4, 2006 Forrester/ITAA US Tech Sector Index: Q3 2006Sector Health Improves With Rebounding Vendor Profits And Revenuesby G. Oliver Young, Andrew Bartels with Ellen Daley |
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Executive Summary
The health of the US tech sector improved in Q3 2006 and posted its best performance in five and a half years, based on the readings from the Forrester/ITAA US Tech Sector Index. The index rose 3.2 points compared with Q2 2006, and 6.7 points from Q3 2005. Q3 results were predominantly positive, with seven of the 11 underlying measures showing gains for the quarter. However, two indicators fell substantially. The strongest gains were in US-based vendor profits and CIO confidence, while venture capital funding took an expected summer break. Among leading indicators — CIO confidence, US technology imports, venture capital funding, and Forrester's outlook for business investment in IT — results were mixed. Two of the four indicators fell for the quarter, although overall, the forward-looking results were positive.
This is an excerpt
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