European IT spend back on the increase

A twitch...

ComputerWire: IT Industry Intelligence

The European IT market has entered its first phase of recovery, according to analyst IDC Corp. It said technology spending in Western Europe will increase 4.4% in 2002, rising to 6.2% in 2003. That compares to an estimated growth rate of 3.4% in 2001.

The current weak outlook has been exacerbated by accounting scandals and a number of high-profile bankruptcy protection filings. However, these facts don't seem to have clouded the ever-optimistic analyst forecasts.

That said, IDC does caution that it may take up to six months for technology vendors to start feeling a sustained improvement in revenues. It will therefore take until early 2003 for the recovery to fully feed through into the marketplace, IDC predicted.

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