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
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Slideshows
10 Cyberattacks on the Rise During the Pandemic
Cynthia Harvey, Freelance Journalist, InformationWeek,  6/24/2020
News
IT Trade Shows Go Virtual: Your 2020 List of Events
Jessica Davis, Senior Editor, Enterprise Apps,  5/29/2020
Commentary
Study: Cloud Migration Gaining Momentum
John Edwards, Technology Journalist & Author,  6/22/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
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