Feeds

IT recovery: once bitten, twice shy

US economy might be looking up

  • alert
  • submit to reddit

3 Big data security analytics techniques

In one way or another, things are starting to look up, and the indications on Wall Street are that the economy might be recovering. With a rebound in the economy will come the inevitable and understandably wary optimism that might even cause a sustained, slight increase in IT spending.

The Commerce Department said last week that the US economy, as measured by gross domestic product, grew by 3.1%. The government economists, knowing that the economy only grew at 1.4% for both the first quarter of 2003 and the last quarter of 2002, didn't have high hopes for the second quarter of 2003, which they initially forecast to grow at 2.4%.

Some people will say that low inflation rates, low interest rates, and the Bush tax cut have kept consumers confident enough to keep spending through the recession, and they are spending at an increasing rate. What no one is saying is that many consumers can afford to do this because they are refinancing their homes at an astonishing rate and are using the money to remodel and to pay off debt.

The department said that business inventories in the US were way down, as companies were pessimistic in their future planning and therefore did not have a lot of finished goods stacked up in their warehouses. Speculation that the US economy might grow by 5% or more in the third and fourth quarters of 2003 will probably put a cautious spring in the steps of chief executives across the land. Commerce said that spending on capital equipment and software rose by 8.2% in the second quarter, higher than the 7.5% growth it had expected.

If there is an upturn in the last quarter of this year, it will be welcomed, especially after four years of IT executives predicting an upturn in spending in the second half. In the past four years, untold numbers of companies have gone bust in the second half, and the new year has started with something more like a whimper than a bang. This is why no IT executive wants to go on record in predicting an upturn, even if there is one.

Source: Computerwire/Datamonitor

Related research: Datamonitor, "Global IT & networking spend by vertical market" (DMTC0820)

Combat fraud and increase customer satisfaction

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Ex–Apple CEO John Sculley: Ousting Steve Jobs 'was a mistake'
Twenty-nine years later, post-Pepsi exec has flat-forehead moment
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.