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Poll: Economic Outlook Dodgy
The tepid U.S. economy isn't suitable for IPO, says a recent poll of 147 NDCF readers (see Economic Outlook).
Just 1 percent of respondents rated the American economic climate as "buoyant," while 31 percent voted it "reasonable." A full 48 percent judged it "not too hot," and 20 percent checked the "Don't ask -- I'm hiding under my desk" response.
Despite this uncertainty, some 61 percent of respondents foresee at least moderate growth for their companies during the second half of 2005.
Oil prices were the biggest single factor cited by data center managers for the state of the economy, although the weak dollar, the war in Iraq, and consumer spending were all mentioned. These factors all figured prominently in an NDCF poll conducted earlier this year (see Poll: IT Managers Bemoan Weak Dollar and Pork City Payouts).
Perhaps things are not as bad as they could be. A number of vendors that suffered a tough first quarter of 2005, such as Foundry Networks Inc. (Nasdaq: FDRY) and IBM Corp. (NYSE: IBM), bounced back with their second-quarter results (see IBM Reports Q1 Results, IBM Reports Q2, and Foundry Faces Tough Times).
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