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Fears Rise in It Circles Over New Economic Downturn

arrow indicates a downturn

Credit: Creative HR Solutions

The IT sector has done reasonably well coming out of the recession. More IT budgets this year were up than down and hiring is rising. But after months of gains, there are new worries that the U.S. economic recovery is in trouble. The U.S. Labor Dept.'s latest monthly report on employment is the most obvious indicator. The political volatility over the debt ceiling isn't helping. 

"There is a palpable sense of a slowdown or less of a recovery over the last couple of months then earlier in the year," says Frank Scavo, president of research firm Computer Economics. "The uncertainty that this is bringing to decision makers in the executive suite is not good for spending initiatives," Scavo said. 

Andrew Bartels, an analyst at Forrester Research, says: "I'm getting very, very nervous about how strong the recovery is going to be." The impasse over the debt ceiling makes Bartels nervous. "It is as scary as hell to have Republican presidential candidates and Republican congressmen saying we don't need to raise the debt ceiling — I don't understand what planet these guys are living on," Bartels says.

From Computerworld
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