With the US economy growing 7.2 percent last quarter, the strongest quarterly growth since 1984, there may be more good news to come. Information technology (IT) productivity and GDP growth are very closely linked, IDC analyst and vice president Vernon Turner said last week, and many corporations have not upgraded their computer equipment since the Y2K bug spending spree of 1999.
In the summer, IDC predicted IT spending would grow 4 percent annually over the next four years. Gartner also recently called for a "big turn" in IT spending next year, jumping from less than 3 percent growth this year to 5.4 percent next, and then 5 percent each year until 2007.
"A substantial recovery in information technology capital spending is increasingly likely in 2004," Michael Fleisher, Gartner chairman and chief executive officer, said on Oct. 20.
With a recovery in PC spending, the semiconductor industry could finally be looking at sustained growth in all areas.
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