IDC: IT Spending to Hit 5% Stride

The outlook for IT spending recovers steam after Hurricane Katrina slowdown.
IDC is predicting that U.S. IT spending will grow by 5 percent in 2006.

The new prediction comes from IDC's FutureScan unit, which analyzes both customer surveys and market indicators to gauge IT industry supply and demand.

Metrics for buyer expectations and vendor revenue forecasts, as well as the macroeconomic indicator are all apparently aligned and showing the same general trend.

IDC noted that there was a corresponding fall in user expectations following Hurricane Katrina.

"Then last month they more than doubled their spending outlook when users realized the economy was still perking along," John Gantz, IDC's Chief Research Officer, said in a statement. "This month they came back to earth. Small business executives were especially realistic."

IDC's forecast of 5 percent growth in U.S. IT spending growth in 2006 is double the 2.5 percent forecast earlier this week by Merrill Lynch.

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