IDC’s FutureScan Results for December Show Divergent Supply and Demand Side Expectations for IT Spending
FRAMINGHAM, MA – December 1, 2004 – IDC today announced the latest FutureScan results for the month of December. Buyer Intent, which reflects market demand for IT products and services over the next 12 months, dropped a little to 1088 from 1091 but is still up considerably from the number in January. On the other hand, the Market Indicators number, which combines input from economic and IT industry revenue forecasts, continued to decline to 1032.
"The dip in the Market Indicators number is a function of two factors," noted John Gantz, IDC's Chief Research Officer. "Expectations for U.S. GDP and profit growth for 2005 keep inching down and are lower than the 2004 figures, and forecasts for sequential revenue growth for IT vendors remain flat."
"For much of the year, the demand-side indicators lagged the supply-side indicators," added Gantz. "But in July they crossed over and for four of the last five months the Buyer Intent metric has been higher than the Market Indicator metric. IDC's forecast for IT spending over the next 12 months, by the way, sits squarely between the two."
Last month IT executives indicated they were much more bullish than line-of-business executives. This month expectations of the two sets of executives were much more in line. Historically, line-of-business executives have been more bullish than IT executives about future IT spending.
FutureScan is a set of market metrics that measure supply and demand in the IT industry based on leading indicators and customer surveys. Values reflect expectations of future growth, with an index value of 1000 indicating zero growth and each additional 10 points representing roughly 1% of expected growth or contraction.
FutureScan results for December and prior months can be viewed at http://www.idc.com/futurescan.
For more information about FutureScan, or any other products from IDC's Global Research Organization, please contact Amie White at 508-935-4653 or firstname.lastname@example.org.
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