Gartner cuts its 2013 IT spending growth forecast to 2% from an April forecast of 4.1%. A strong...
Jul 2 2013, 17:49 ET
Gartner cuts its 2013 IT spending growth forecast to 2% from an April forecast of 4.1%. A strong dollar accounts for nearly 3/4 (150 bps) of the change. The rest is largely due to PC weakness; whereas Gartner previously expected sales of personal devices to grow ~8%, it now forecasts 2.8% growth. Enterprise software is still seen growing 6.4% in spite of recent earnings misses. Interestingly, Gartner's cut comes as Bloomberg observes tech stocks just delivered their "best 10 weeks of relative performance since 2009," and that the performance is a sign investors see the economy entering a growth period in which capex will pick up. Tech ETFs: XLK, QQQ, QTEC, IGM, IYF, PTF (IDC May forecast)