IT spending is still growing

Simon Quicke

4 August 2008

Those hoping that the IT sector will survive the economic downturn will be cheered by figures from analyst house GfK which show continued growth in IT spending.

According to the analysts, IT barometer spending on IT equipment grew by 9% in the first half of 2008 to more than £5bn, which was an increase of £400m over the same period last year.

Products that have helped drive the growth include mobile computers bought by consumers. Sales of laptops grew by 24% in the first half of 2008, boosted by the growth in ultra-mobile PCs. The growth in laptops has been at the expense of desktops PCs, sales of which have fallen by 2% in value in the first half of 2008.

Corporate sales have grown by 4%, but consumer sales continue to defy the credit crunch, growing by 18%.

“We were expecting to see a slowdown in consumer IT spending in the first half of 2008, but this has not been the case,” said Anthony Norman, Business Group Director at GfK. “Consumers have continued to spend their disposable income on IT hardware and software.

“However, it is noticeable that in the corporate sector, many businesses are listening to analysts’ predictions on the current economic climate and have been careful about their IT spend.”

Elsewhere in the IT market, software vendor Sage Group said that it was in line to meet expectations for its financial year. Chief executive Paul Walker said its strength in the SME market, which remains resilient, was helping it continue to grow.