2012 tech spending growth forecast lowered

Research firm Gartner Inc. has lowered its global technology spending growth forecast because of the sluggish economy and the euro crisis. Gartner today announced it expects the computer hardware sector to be the hardest hit, hurt by supply constraints in the hard-disk drive industry. Floods that have left one-third of Thailand under water upended hard-drive production in the country—a major manufacturing hub for the industry. Gartner now expects worldwide spending on technology to grow by 3.7% this year, to $3.8 trillion. That’s down from its earlier forecast of 4.6% growth. In 2011, global tech spending grew 6.9% from the prior year, to $3.7 trillion. Though the outcome of the euro crisis is not yet clear, Gartner expects businesses and consumers in Europe to be cautious about spending money on technology. The research firm now expects 2012 spending to grow by just 0.7% in Western Europe, down considerably from its earlier forecast of 3.4% growth in that region. Gartner includes hardware, software and information technology services in its spending forecast. It also includes spending on telecom equipment and services. It expects all sectors to see slower spending growth than in 2011, though telecommunications services, just barely. Read more about the firm’s outlook on the tech industry in the new year at its website here.