Falling Optimism About Technology Demand Conditions

Optimism about demand conditions in technology markets has fallen since early 2010, says new research from the Economist Intelligence Unit.


The Economist Intelligence Unit’s Tech Sector Barometer shows that tech-sector executives are slightly less optimistic about demand conditions than they were in early 2010. Nevertheless, despite worries over the state of the global economy, executives remain broadly positive about the prospects for technology companies over the next six months, and a higher proportion of executives believe they are on a better financial footing than a year ago.


"The slight decline in optimism since our previous survey could reflect the shift from stimulus spending to the introduction of austerity measures," says the Economist Intelligence Unit’s Iain Morris, editor of the Tech Sector Barometer. "Even so, confidence remains high, with less than 10% of survey respondents forecasting deterioration in demand conditions over the next six months."


The report finds that telecoms service providers are less optimistic about their revenue prospects than either telecoms equipment or IT companies. Almost half (43%) of respondents expect to see an increase in R&D over the next six months. Meanwhile, executives from Asia-Pacific and North America express more confidence than Europe-based respondents in the financial health of technology companies.


The study also says that pricing pressures and reduced demand appear less troubling than six months ago, but concern is mounting about the shortage of talented staff.





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