Gartner Technology Demand Index at 87 Percent for May, Shows Businesses Spent Below Budgets
Second Quarter IT Spend Remains Anemic
STAMFORD, Conn., June 16, 2003 — IT spending levels in May were below the budgets businesses had previously set for the month, according to the Gartner Technology Demand Index, an index included in a monthly economic indicator service launched by Gartner, Inc. (NYSE: IT and ITB).
According to a weekly poll of a 20,000-member Gartner panel of IT decision makers from small, midsize and large businesses, U.S. businesses spent below their budgeted levels, recording 87 percent on the Gartner Technology Demand Index for May.
In the quarter, the index reported its lowest level in March at 83 percent, a consequence of the uncertainty surrounding war and SARS. April showed a recovery to 89 percent, but weak business conditions overpowered any post-war optimism in May.
"Weak business conditions continue to hold IT spending slightly below budget, and we see no indications of a June recovery" said David Hankin, senior vice president and general manager of Gartner. "As vendors begin to report earnings at the end of the quarter, we?ll see this erosion in planned spending within the market reflected in their numbers."
The Gartner Technology Demand Index is an offering within Gartner IT Watch. Gartner IT Watch uses results from weekly polling of the 20,000-member IT Decision Maker Panel to produce an early warning indicator for investment professionals and vendors. Gartner IT Watch captures both short-and long-term attitudes toward investment in IT products and services, and reflects anticipated changes in spending trends because of current events and broader economic factors.
Analysis is provided monthly for the overall IT market and is further broken out to provide insight into current and projected spending in vertical industries. It also identifies vendors and products that will lead recoveries or play a shaping role in IT spending patterns.
About Gartner:
Gartner, Inc. is the leading provider of
research and analysis on the global information technology industry. Gartner serves more
than 10,000 clients, including chief information officers and other senior IT executives
in corporations and government agencies, as well as technology companies and the
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visit www.gartner.com.
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