Worldwide IT spending is forecast to total US$3.7 trillion in 2012, a 2.5 percent increase from 2011, according to figures released by research agency Gartner.
This is down from Gartner's previous forecast of 3.7 percent growth for 2012, the company said in its quarterly IT spending forecast.
But the decline is not due to any negative market sentiment. Gartner puts it to the U.S. currency than any actual decline in spending.
"The recent strengthening in the value of the U.S. dollar versus other currencies has resulted in the reduced growth rate," said Gartner in a statement today.
Gartner also said that when looking at spending in constant U.S. dollars, IT spending is on pace to increase 5.2 percent in 2012, up from its previous projection of 4.6 percent.
According to Gartner analysts, IT spending in the government sector is expected to contract moderately on a global basis in 2012 and 2013, driven by austerity measures in the Eurozone.
In the small and midsize business market, spending is forecast to reach $874 billion in 2012 and will grow to $1 trillion by 2016.
The strongest growth is forecast to show is in the worldwide telecom equipment market is with spending reaching $472 billion in 2012, a 6.9 percent increase from 2011. "Gartner attributes this growth to the continued health of the mobile devices market as well as a more positive outlook for enterprise network equipment, which is being driven by spending on application acceleration equipment, network security, WLAN and Ethernet switches," said the research company.
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