SAN FRANCISCO, June 30 (Xinhua) -- Global spending on information technology (IT) may fall 10.6 percent in 2009, more sharply than the 3-percent decrease projected at the beginning of the year, market research firm Forrester said on Tuesday.
Forrester said it lowered the forecast because of the large drop in business technology investment during the first quarter this year and possible similar poor results in the current second quarter.
However, the weak results in the first half of 2009 also mean that the worst declines may be over and the market will hit bottom sooner, Forrester noted.
Forrester now expects growth of IT investment in the United States to resume in the fourth quarter of 2009, followed by revival of IT buying in other markets in 2010.
According to Forrester's latest outlook, IT spending in the United States is expected to shrink 5.1 percent in 2009, compared with the 3.1-percent decline previously predicted.
"While Q1 2009 saw a scary drop in purchases in the U.S. tech market, ironically that is good news for the long run and we expect to see a stronger rebound sooner," Andrew Bartels, vice president and principal analyst of Forrester, said in a statement.
"The big drops are not precursors to further declines; rather, we think they are evidence of a temporary pause in U.S. tech purchases, which we expect to start recovering in Q4 as businesses realize that they overreacted in the first quarter," he added.
Bartels said Forrester also expects that "tech markets in Europe and Asia will start to recover in the first half of 2010."
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