Forecast Report

US IT Market Outlook And Summary: Q4 2007

A Likely Slowdown In The US Economy Will Lower 2008 IT Market Growth Rates

December 27th, 2007
With contributors:
Heidi Shey , Ellen Daley

Summary

With dark clouds hanging over the US economy and growing fears of a recession in 2008, Forrester has lowered its outlook for growth in US IT investment, purchases, and spending in 2008. We have downgraded our forecast for 2008 IT investment for 2008 from 7.8% to 4.8% because of likely cutbacks in capital purchases in this gloomy environment. Our 2008 forecast for IT spending (reflecting businesses' and government IT operational budgets) has been lowered from 6.4% to 5.2%. This forecast assumes that the US economy will experience two to three quarters of very weak growth but will avoid an actual recession in 2008 — although it won't take much to upset the apple cart.

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