Growth Of IT Economy Modest At Best--Gov't Report - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance

Growth Of IT Economy Modest At Best--Gov't Report

A Commerce Department report sees good news and bad news, amounting to a near stall over the last 12 months.

New government information shows a seesaw of good news and bad news for the IT industry. A Commerce Department report indicates that, overall, the industry has grown modestly at best over the last 12 months. The report dissects results for September and for the 12 months ending in September.

The good news in September was that orders of computer wares helped boost orders for all durable goods. But actual shipments of computer-related products fell during the month. Computers are one component of what the government calls durable goods--items designed to last at least three years.

The value of computer products that had been ordered--$35.6 billion--rose 3.9% compared with August's totals; the value of overall durable-goods orders inched ahead by 0.2%, the Commerce Department reports. September figures in the report are preliminary; those for August are revised.

But actual computer shipments fell 5.8%, to nearly $38.1 billion, compared with shipments of durable goods as a whole, which fell 1.2% in September.

For the year ended in September, orders for computers and related products rose by 10.1%, 2 percentage points lower than all durable-goods orders. It's unusual for IT-product orders to grow more slowly than all durable goods over 12 months. Yet, computer shipments for the past year increased by 11.4%, a half-percentage point better than overall shipments.

At the same time, however, computer wares are backing up in warehouses. Inventories rose 2.9% compared with the previous 12 months and unfilled orders jumped 7.2%. By contrast, overall inventories of durable goods grew 0.3%, and unfilled orders rose by 0.7%.

IT vendors aren't clearing their warehouses as fast as other sectors have over the past year. The value of computer inventories rose 7% over 12 months, while unfilled orders dropped 1.4%. As a comparison, the value of inventories of all durable goods in the past year rose by 6.3% and unfilled orders rose 9.6%.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Slideshows
What Digital Transformation Is (And Isn't)
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/4/2019
Commentary
Watch Out for New Barriers to Faster Software Development
Lisa Morgan, Freelance Writer,  12/3/2019
Commentary
If DevOps Is So Awesome, Why Is Your Initiative Failing?
Guest Commentary, Guest Commentary,  12/2/2019
Register for InformationWeek Newsletters
Video
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll