A company which monitors the technology industry has slashed its projection of global spending on IT.
IDC said it expected the figure to rise by just 0.5% in 2009 because of economic turmoil. In November, it had predicted that IT spending worldwide would grow 2.6% in 2009.
'The sharp economic downturn which began in 2007 is now affecting consumer and IT spending in a significant way,' IDC said. It added that the market for computer chips, or semiconductors, one of the first industries to be affected, 'remains in a state of turbulence'.
IDC expects the semiconductor market to plunge 22% this year after sliding 2% in 2008. The 'abrupt slowdown' in chip shipments is likely to affect Asia, Europe and the US, according to IDC. The worldwide semiconductor market will not recover until 2010, it predicts.
