IDC: FutureScan Results for November Show Sudden Drop in Revenue Forecasts for Suppliers

IDC (www.idc.com) announced the latest FutureScan results for the month of November. Buyer Intent, which reflects market demand for IT products and services, is 1091, up from 1041 in October.

The Market Indicators number, which combines input from economic and IT industry supply-side indicators, dropped suddenly from 1073 in October to 1054 in November. Revenue forecasts have also fallen below 5% and match the macroeconomic indicators.

"The large dip in the Market Indicators number is mainly a result of March's spike in the stock market receding from the calculation," said Stephen Minton, vice president, Global IT Markets and Strategies. "It may take a stark change in the macroeconomic climate or continued higher expectation of buyers for this number to go up."

For the first time in nine months, line of business executives and CIO's have very different views about future IT spending. As a result, the Buyer Intent numbers have reversed themselves.

"However, it would be wise not to make any rash business decisions until buyer intent remains steady for at least three months in a row."

FutureScan is a set of market metrics that measure supply and demand in the IT industry based on leading indicators and customer surveys. Values reflect expectations of future growth, with an index value of 1000 indicating zero growth and each additional 10 points representing roughly 1% of expected growth or contraction.