The Good News Is: There's No Real News - 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
News

The Good News Is: There's No Real News

A leading economic indicator shows scary numbers for the computer industry, but don't panic just yet.

The Dow and Nasdaq stock exchanges bucked several days of losses and closed up on Monday, in part due to strong economic numbers released by the Commerce Department. According to a monthly report on durable goods manufacturers, the people who make products expected to last several years, such as cars and appliances, new orders increased $2.7 billion in February, or 1.5%.

But hang on a minute. Look deeper into that report, and there's some alarming numbers. New orders for computers and related products (such as storage devices and peripherals) fell 3.1%, and shipments sank 3.7%. In fact, shipments fell well into the red after posting increasing numbers for every month since September. Does this mean the computer industry is in trouble, or that IT buyers are seeing budgets shrink yet again?

Ira Silver, a visiting professor of economics at the University of Dallas, says it's hard to tell why the number of shipments dropped for the month. It could be retrenching in the industry, he says, or perhaps the five preceding months of growth simply resulted in buyers stopping for breath.

But the chances are, it's not bad news. "One month is not something to be overly concerned about," he says. "Next month, if we're down again, that would be an indication of a new trend." But Silver is optimistic that another dip won't happen. "The whole high-tech sector is really in line for a rebound," he says. "There's a lot of old equipment out there that needs to be replaced."

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
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Slideshows
11 Things IT Professionals Wish They Knew Earlier in Their Careers
Lisa Morgan, Freelance Writer,  4/6/2021
News
Time to Shift Your Job Search Out of Neutral
Jessica Davis, Senior Editor, Enterprise Apps,  3/31/2021
Commentary
Does Identity Hinder Hybrid-Cloud and Multi-Cloud Adoption?
Joao-Pierre S. Ruth, Senior Writer,  4/1/2021
Register for InformationWeek Newsletters
Video
Current Issue
Successful Strategies for Digital Transformation
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
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