…And it’s not particularly good.

 

Forrester has updated their 2008-2009 economic forecast in light of the financial situation. Their new report: What the Financial Crisis Means to the Tech Market explores the US IT market, including Q3 2008. No surprise that they anticipate a slowing in growth of tech product and service purchases. The reason is an impending recession starting in the third quarter.

 

Enter a worldwide financial crisis. This most recent report sticks with the initial prediction of a marked slowdown in growth for US tech purchases, but no official “downturn”. This is because Forrester’s most recent report presumes the recession is already upon us.

 

The bottom line: the US and others will experience a longer and deeper recession than Forrester initially expected. This means they believe tech is set to see several quarters of declines in purchases. Previously, they predicted two or three quarters of little or no growth in late 2008 and the first half 2009.