Technology investments feel the impact of weakening economy

2023-04-13 03:30

For the fifth consecutive month, IDC has lowered its 2023 forecast for worldwide IT spending as technology investments continue to show the impact of a weakening economy.

"Tech spending remains resilient compared to historical economic downturns and other types of business spending, but rising interest rates are now impacting capital spending."

Service provider spending is still weakening from last year's highs as the industry adjusts to slower post-COVID growth, but planned investments by cloud and hyperscale providers have broadly held up since last month.

"The most significant impact remains concentrated in consumer markets with consumer IT spending now forecast to decline by 2% this year," said Minton.

Direct IT spending expected to grow by 6.4%. While direct IT spending is expected to grow by 6.4% overall in 2023, indirect spending through channel providers will increase by just 2.5% as credit tightening affects smaller businesses and consumers in their ability to fund technology investments.

"Meanwhile, cloud infrastructure, software, and services are growing more slowly than a year ago but continue to account for a larger share of total IT spending and are reinforcing the general sense of resilience which the industry still enjoys."

News URL

https://www.helpnetsecurity.com/2023/04/13/it-spending-forecast-2023/