Save or Share this Report

For CIOs

Government Spending Brinksmanship Drags Down The 2013 US Tech Market Outlook

We Cut Our 2013 Spending Growth Estimate To 3.9% From 5.7%

October 25, 2013

Primary author headshot


Why Read This Report

By rights, US CIOs should be looking at a relatively decent 6% growth in their tech purchases in 2013, as we had predicted earlier this year. Instead, the drag on the US economy and on US tech buying due to sequestration's across-the-board cuts in federal spending, the two-week federal government shutdown, and the last minute increase of the federal debt ceiling have kept the US economy and US tech market stuck in second gear. While the private sector has been growing at annualized growth rates of 2% to 3%, government spending has been declining. Although the congressional compromise to reopen the federal government and raise the debt ceiling through January 2014 removes the immediate risk of a worldwide financial crisis and economic recession, business caution about renewed deadlock will constrain economic growth and tech buying for the rest of the year. As a result, we have reduced our 2013 forecast for US business and government purchases of information and communications technology (ICT) goods and services to 3.9%, from our 5.7% growth forecast earlier this year. Our revised forecast continues to show strong growth in software, especially, software-as-a-service (SaaS) and analytical and collaboration apps; IT consulting and systems integration services; and communications equipment, but we also see weakness in computer equipment, IT outsourcing, and telecom services.

Get Access

Already a Client?

Log in to read this document.

Become a Forrester Client

Customers are the new market-makers, reshaping industries and changing how businesses compete and win. Success depends on how well and how fast you respond. Forrester Research gives you insights and frameworks aligned to your role to shorten the time between a great idea and a great outcome, helping your teams win in the age of the customer. Contact us to learn more.

Purchase Report

This report is available for individual purchase ($499 USD).


Table of Contents

  • 2013 US ICT Market Forecast Lowered To 3.9%
  • Consumer Tech Spending Lags Behind Business/Government Buying
  • Vendors Are More Optimistic Than Our Outlook

  • The Rest Of 2013 Will Be A Good Time To Capture Vendor Discounts

  • Republican Hardline On Debt Ceiling Hits US Economy And Tech Market
  • Supplemental Material
  • Related Research Documents

Recommended Research