IT spending to grow 5% in 2007

Global purchases of IT goods and services will slow to 5% growth in 2007, reaching $1.55 trillion in sales according to Forrester Research. Forrester’s 2007 forecast breaks down as follows: global IT purchases: up 5% to $1.55 trillion, compared with eight% growth in 2006; global IT spending: up 6% to $2.02 trillion, compared with 8% growth in 2006; US IT purchases: up 5% to $527 bln, compared with 6% growth in 2006; US IT spending: up 5% to 761 bln, compared with 6% growth in 2006.

Software purchases will do better than average, growing 7%, down from 10% growth in 2006. Computer equipment will continue to face slowing demand, up only 4% from 6% in 2006. Communications equipment will slow down significantly, growing 3% from 9% in 2006. IT services and outsourcing will increase 4%, down from 8% in 2006.