Global IT spending in 2023 is experiencing a decline as the repercussions of a faltering economy continue to influence technology investments, according to IDC.
The updated monthly forecast predicts a 4.4% growth in IT spending to $3.25tn in 2023, a slight dip from the previous 4.5% estimate and a notable drop from October 2022's 6.0% projection.
Stephen Minton, VP of IDC's Data & Analytics Research Group, said: "Since the fourth quarter of last year, we have seen clear and measurable signs of a moderate pullback in some areas of IT spending.
"Tech spending remains resilient compared to historical economic downturns and other types of business spending, but rising interest rates are now impacting capital spending."
The report also discovered that cloud services are set to drive growth, while non-cloud spending is expected to decline.
Minton added: "Resellers that still derive much of their revenue from on-premise infrastructure and PCs are facing difficult market conditions this year.
“Meanwhile, cloud infrastructure, software, and services are growing more slowly than a year ago but continue to account for a larger share of total IT spending and are reinforcing the general sense of resilience which the industry still enjoys."
