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IDC Lowers 08 Forecasts

FRAMINGHAM, Mass. -- IDC today announced that it has lowered its forecasts for IT spending in 2008, due to recent downward revisions to macroeconomic indicators and assumptions. As a result of these changes, IDC now predicts worldwide IT market growth of 5% this year, down from last year's pace of 6%. Global IT spending is now projected to reach $1.38 trillion this year, up from just over $1.3 trillion in 2007. In the United States, growth is expected to weaken to 4% in 2008, compared with 6% in 2007.

These updated forecasts, published in the IDC Worldwide Black Book, reflect the negative change to economic indicators and projections since the previous quarter. The general reduction in anticipated growth for the U.S. economy has translated into forecast reductions across most IT market sectors. Additionally, historical correlations and recent IT buyer surveys confirm the view that market conditions are likely to weaken in the coming months.

"While there is still debate over the severity and length of a U.S. economic slowdown, we do know that the IT market will not escape unscathed from any significant downturn," said Stephen Minton, vice president of Worldwide IT Markets at IDC. "IT vendor performance will likely be buoyed to some extent by growth in emerging geographies, and perhaps by a weakening U.S. dollar, but we have also detected some signs of softer market conditions in Europe and Japan. Any recession in the U.S., meanwhile, would have repercussions across most major economies and IT markets."

IDC