IT Investments Grew Strongly In Third Quarter - InformationWeek

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Software // Enterprise Applications

IT Investments Grew Strongly In Third Quarter

The Commerce Department calculated the value of those IT investments at a seasonally adjusted $575.6 billion.

IT continues to outperform the entire U.S. economy, as the value of investments in IT wares rose at an annually adjusted rate of 7.2% in the third quarter, the Commerce Department reported.

Overall, the gross domestic product--the value of goods and services produced in the U.S.--rose 4% last quarter. That's up 0.1 point from an early estimate and its best showing since the first quarter. In the second quarter, GDP grew 3.3%.

Information-processing equipment and software represents 0.3% of that 4%, or 7.5% of the GDP. That's down from the second quarter. Then, IT represented 16.7% of the second-quarter 3.3% GDP rate.

The Commerce Department calculated the value of those IT investments at a seasonally adjusted $575.6 billion in so-called chained dollars, pegged to the value of the dollar in 2000. In the second quarter, that figure stood at $565.4 billion. A year earlier, the government gauged IT investments at $507.1 billion.

In a year, the value of IT investments rose 13.5% from third- quarter 2003. As a comparison, the value of all goods and services produced since third quarter 2003 rose 4%.

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