Business confidence levels declined in the last week of May, according to the latest update to the IDC COVID-19 Tech Index. IT buyers in the US, Western Europe, and some parts of Asia/Pacific indicated that they now expect total IT spending to decline by more than previously anticipated. This is in spite of a general stabilization in other market indicators over the past month, as many countries prepare to tentatively move into a gradual recovery phase.
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Business confidence levels declined in the last week of May while market indicators have stabilized, according to the latest IDC COVID-19 Tech Index.
Confidence levels are still especially weak in the USA, where they have continued to trend down since the crisis began. US firms are a little more confident about the overall economy than two weeks ago, but conversely less confident about their own IT budgets for the year as a whole. Significant spending declines are predicted for traditional technologies including PCs, peripherals, software applications, and project-oriented IT services. Survey results also deteriorated in Europe, especially in France, Italy, and Russia.
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“The survey results have diverged with businesses in most countries now expressing less confidence about their own spending than about the broader economy,” said Stephen Minton, vice president with IDC’s Customer Insights & Analysis group. “This could just reflect the fact that we’re still in the middle of the second quarter when the biggest spending cuts are likely to be concentrated and the scale of the short-term impact has been even worse than some firms expected. In fact, survey results are now closer in line with market indicators in terms of the scale of IT spending decline projected for 2020 as a whole.”
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