The Wall Street Journal-20080212-Forecasts for IT Spending Are Cut

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Forecasts for IT Spending Are Cut

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IDC and Forrester Research Inc. lowered their forecasts for information-technology spending this year amid weakening economic data.

IDC now projects world-wide IT market growth of 5% this year, to $1.38 trillion, slowing from last year's increase of 6%. IT growth in the U.S. is expected to slow to 4% from 2007's 6% increase. In December, IDC projected 2008 IT spending would rise between 5.5% and 6%. In addition, IDC projected a 5% decline for the U.S. personal- computer market in 2008, compared with 2007 growth of 2%.

Forrester Research said it projects U.S. purchases of IT goods and services will rise 2.8%, down from its 4.6% forecast. The firm expects global purchases of IT goods and services to rise 6%, down from its previous forecast of 9%.

In 2007, global IT buying grew 12%, according to Forrester, while U.S. IT purchases increased 6.2%.

Forrester said the U.S. share of global IT purchases is expected to shrink to 33% this year. The U.S.'s share was 40% in 2003.