Latest results from the Economist Intelligence Unit’s semi-annual Tech Sector Barometer indicate a slight decline in optimism among respondents over the past six months. This could, of course, reflect the shift from stimulus spending to the introduction of austerity measures.

Confidence remains high, however, with less than 10% of respondents forecasting a deterioration in demand conditions. The survey results also broadly reflect the latest forecasts from the Economist Intelligence Unit of modest growth in the global economy (a 2.7% increase in real GDP next year, compared with 3.5% in 2010) and no feared double-dip recession. They also support Economist Intelligence Unit forecasts that IT spending will grow at a rate of 4.4% next year—the same rate as in 2010.

Company forecasts suggest that there is some concern about demand for consumer electronics where GDP growth is also expected to be sluggish. The ongoing corporate refresh cycle is nevertheless a welcome development for many technology companies. Expectations of a deterioration in demand conditions are likely to be strongest among companies with exposure to the public sector, where cutbacks are under way.

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