The shift in global business sentiment over the course of just the last 4 months has been such that Forrester Research now predicts that global spending on IT goods and services will grow only six per cent in 2008 (to a total of $1.7 billion). Back in December the self same organisation was backing a nine per cent rise, so the confidence factor has dropped by a full third in a very short space of time.
"Historically, there has always been a very strong correlation between the economy and technology spending," said Andrew Bartels, author of the Forrester report.
"Our forecast is premised on a mild recession in the US economy in the first two or three quarters of 2008, caused by a shrinking housing sector and tapped-out consumers reining in their purchases due to higher interest rates, energy costs and consumer debt services.”
And when the US coughs…
