Global information technology spending will rise this year, but not as much as previously expected because of the strength of the dollar versus the euro, Gartner Inc. said Thursday.
The research firm now expects global IT spending to climb 3.9 percent over 2009, to $3.35 trillion. It had previously forecast 5.3 percent growth.
In a statement, Richard Gordon, a Gartner research vice president, blamed debt issues in Europe for the change. Concerns about surging public debt levels in Europe have weighed on the euro this year.
"Our latest IT spending forecast reflects the fact that the global economic outlook is stable but vulnerable to shocks in key regions and industries, which means that IT spending decisions are still scrutinized for value," he said in a statement.
Gartner expects IT services spending will rise 2.9 percent to $786 billion, while telecom spending will rise 3.4 percent to $1.97 trillion. Software spending will rise 3.1 percent to $229 billion.
The research firm expects to see much higher growth in computing hardware, which it believes will climb 9.1 percent to $365 billion due to strong personal computer sales. PC sales have been boosted in part by the adoption of Microsoft Corp.'s latest computer operating system, Windows 7.
© Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.