Wendover-Global Insight Survey Shows IT Spenders
The latest data from the Wendover-Global Insight IT Spending Index shows that IT sales are improving slightly, with an increase of 12 percent through August over the average for the second quarter of 2003. But the Index is still lower than pre-recession peaks, and there are no signs portending a robust market anytime in the near future.
The Wendover-Global Insight IT Spending Index measures IT decision-makers’ intentions to invest in new projects and covers decision-makers at 80,000 of the largest corporations in the United States and the United Kingdom, including all Fortune 500 corporations. The Index is set at 100 points in the fourth quarter of 1999.
The overall Index has shown small, steady increases, reflecting underlying business trends in specific industries. The current index shows continuing increases in IT sales compared to last quarter in manufacturing, retail and wholesale, trade and utilities. These industries have seen an improved market, along with better sales and earnings reports. Thus, they have more money to invest in IT.
Most service industries saw a decline in IT spending. For example, finance, real estate and insurance industries are still limiting their IT spending, according to the Index. And health-care industries recorded the lowest value since the inception of the index, falling to 79 on the Index. August also saw an abrupt drop in spending for consulting, engineering and accounting services.
For some industries, though, IT spending was up on the Index. Construction industries returned to spending levels earlier in the year. Manufacturing spending on IT rose to 80.3, a 25 percent increase over last quarter. And while the communications industries were seeing lows in the 60s in the first half of 2003, high speed and IP networking have driven spending up in those sectors, to 82 on the August Index.
Emily Hollis is associate editor for Certification Magazine. She can be reached at email@example.com.