IT nongrowth industry; to grow 4.7% this year to $2.78 trillion, says Gartner

Based on a survey of 1,400 chief information officers in a variety of industries worldwide, Gartner estimates a 4.7% IT spending growth to $2.78 trillion worldwide in 2006. (via IBD/Yahoo). Worldwide IT spending rose 15% in 1997 and 16% in 1998, and then slowed back to 11% in 2000, says Gartner.   

Gartner has forecast that total U.S. IT spending will rise 4.6% this year, to $871 billion this year. By comparison, IT spending rose 4.3% to $833 billion in 2005. U.S. GDP grew 2.6% in second quarter to $13.2 trillion dollars annual rate.

Semiconductor sales are forecast to grow 10% this year, though many many of those chips going into sizzling consumer electronics goods.

According to Gartner's CIO survey, manufacturing companies expect average revenue growth this year of 4.5% over 2005. But they expect their IT spending to rise just 2.8%. Tech companies expect average revenue growth of 6.7%, but they plan to hike their IT spending by only 2.5%.

Though definitions of IT can vary, Gartner's IT refers to the development, installation and implementation of computer systems and applications. Continued slow growth for IT would affect almost every major U.S. tech company, including Hewlett-Packard IBM, Cisco Systems, Dell, Oracle and SAP. (via Investor's Business Daily on Yahoo Finance

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