US business IT spending up 17.3% in Q2 2005

Spending by business on information-processing equipment and software represents about 37% of all nonresidential fixed investments. In Q2 2005, businesses spent 17.3% more on computers and peripheral equipment than they did in Q2 2004, US Commerce Department reported. Software investments rose 11.2% YTY. Computer sales represent about 9% of the nation’s gross domestic product. In Q2 2005 GDP grew by 3.3%. Without computer sales, it would have grown only 3%. July 2005 shipments of computer and related products rose 0.5%, though new orders fell by 8.2%. YTY orders soared by 31.7% while shipments rocketed by 31.9%.