Forrester Research said US IT sales of goods and services will fall 3.1 percent this year, it had expected growth of 1.6 per cent compared with 2008. The only sector expected to show growth is outsourcing, which traditionally does well in downturns.
The US market research firm said it changed its prediction because of widespread revisions by professional economic forecasters. However, a recovery is expected in about six months . It expects growth in IT spending in Q4 of 2009 and continued strength in 2010.
Andrew Bartels, an analyst at Forrester, writes:
The US recession keeps getting worse than we and many economists had expected. Instead of the 2% to 3% drop in real GDP that the US experienced in the 1990s and 2001 to 2002 recessions, US real GDP fell by more than 6% in Q4 2008 and will fall by a similar amount in Q1 2009, with more (although lesser) declines until the end of 2009.
Gartner today also cut its IT sales forecast, predicting a drop of 3.8 per cent, worse than during 2001 dotcom plunge.