Slight IT Rebound

According to Economy.com, the information technology (IT) sector is seeing some improvement. The modest recovery in demand for information technology equipment and software, which began early last year and stalled toward the end of the year, is back on track. Given that geopolitical uncertainty has eased substantially in recent weeks, business confidence has climbed and corporate profits are improving, it is likely that the budding tech recovery will gain steam over the next few quarters.

According to the Bureau of Economic Analysis (BEA), U.S. businesses increased IT investment spending at an 8.4% annualized rate in the first quarter of this year.

Meanwhile, according to the monthly CIO Magazine Tech Poll, which surveys several hundred chief information officers about their tech spending plans, weak profitability and tight financial conditions are the two top negatives affecting corporate tech spending.

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