Goldman Sachs Sees Glimmers of Hope in IT Spending

Ann All

The economy is still scary, but is it getting better? The Obama administration sees signs for optimism regarding an economic recovery, though cautious ones at best.


As the larger economy goes, so goes IT spending. Earlier this month, I wrote about surveys from both and the Computer Economics consulting firm that seemed to show signs of stabilization in IT spending. Now there's a similar report from Goldman Sachs.


As Sarah Friar writes on, the company's IT spending index, which encompasses salaries, services, depreciation and other factors, rose to 30.5, up from 26.0 in April. This is the first improvement in a year in its IT spending index.


It's nothing to get too excited about, however. As Friar points out, Goldman Sachs still predicts a negative 8 percent in global IT spending growth for 2009, only a teensy improvement over its previous forecast of negative 9 percent. The IT decision-makers surveyed by Goldman Sachs sound pretty similar to those queried by and Computer Economics, with 49 percent anticipating spending declines in the second half of this year.


Goldman Sachs is a bit more optimistc for 2010, predicting 2 percent growth in global IT spending, up from its earlier projection of negative 1 percent. Emerging economies fare better than developed ones with Goldman Sachs. In the latter category, it predicts a 12 percent contraction in IT spending for 2009, followed by a 1 percent contraction in 2010. In emerging economies, which account for some 35 percent of global IT spending, Goldman Sachs sees a 1 percent contraction in IT spending this year, followed by 8 percent growth in 2010.

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