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  • Business Confidence in IT Spending Declines Despite Moves to Ease Economic Lockdown According to IDC COVID 19 Tech Index

    Posted on IDC.com

    FRAMINGHAM, Mass., June 5, 2020
    Business confidence levels declined in the last week of May, according to the latest update to the IDC COVID-19 Tech Index. IT buyers in the US, Western Europe, and some parts of Asia/Pacific indicated that they now expect total IT spending to decline by more than previously anticipated. This is in spite of a general stabilization in other market indicators over the past month, as many countries prepare to tentatively move into a gradual recovery phase.

    Confidence levels are still especially weak in the USA, where they have continued to trend down since the crisis began. US firms are a little more confident about the overall economy than two weeks ago, but conversely less confident about their own IT budgets for the year as a whole. Significant spending declines are predicted for traditional technologies including PCs, peripherals, software applications, and project-oriented IT services. Survey results also deteriorated in Europe, especially in France, Italy, and Russia.

    "The survey results have diverged with businesses in most countries now expressing less confidence about their own spending than about the broader economy," said Stephen Minton, vice president with IDC's Customer Insights & Analysis group. "This could just reflect the fact that were still in the middle of the second quarter when the biggest spending cuts are likely to be concentrated and the scale of the short-term impact has been even worse than some firms expected. In fact, survey results are now closer in line with market indicators in terms of the scale of IT spending decline projected for 2020 as a whole."

    The COVID-19 Tech Index uses a scale of 1000 to provide a directional indicator of changes in the outlook for IT spending and is updated every two weeks. The index is based partly on a global survey of enterprise IT buyers, and partly on a composite of market indicators which are calibrated with country-level analyst inputs relating to medical infection rates, social distancing, travel restrictions, public life, and government stimulus. A score above 1000 indicates that IT spending is expected to increase, while a score below 1000 points towards a likely decline"...
    [Read more at IDC.com]