US IT Spending Summary: Q3 2007

The Q2 2007 US IT investment and purchases data showed a modest revival in growth after the slowdown in the second half of 2006. With US Department of Commerce data revisions lowering IT investment levels in 2006, the US tech sector should build on the moderate second-quarter growth in Q3 and Q4 of 2007, with growth rates moving into the high single digits. Software continues to be the bright spot in the US tech market, with 7% to 8% growth rates. Computer equipment investment, which took a hit in late 2006, is starting to improve, but communications equipment investment is headed in the other direction. Reversing past trends, US enterprises are setting the pace for IT spending in 2007, with stronger growth than US small and medium-size businesses (SMBs) will be able to show.