Goldman Sachs raises 2010 outlook for IT spending

Goldman Sachs raises 2010 outlook for IT spending

IT spending
2010 2009
IT spending 20090922 forecast Previous 20090922 forecast
IT spending 4% 2% -8% -8%
Online advertising 15% -4%
Online-international 20%
Online-US 5%

(AP) – 9/22/2009
21 hours ago

SAN FRANCISCO — Goldman Sachs increased its 2010 outlook for global information technology spending on Monday and also predicted online advertising will return to double-digit growth next year.

In a note to clients, the investment bank raised its IT spending forecast to 4 percent growth from 2 percent, citing improvements in macro indicators like gross domestic product and corporate profits. It maintained its 2009 forecast, however, which calls for an 8 percent drop in spending.

Goldman Sachs also said that it expects online advertising spending to drop 4 percent this year but grow 15 percent in 2010, helped by economic recovery in the ad market and the ongoing shift of ad dollars to the Internet.

The investment bank expects 20 percent growth internationally and 10 percent growth stateside next year.

In the same note, the company said it removed semiconductor equipment maker Applied Materials Inc. from its "Conviction List" and added data storage company NetApp Inc.

Applied Materials shares fell 37 cents, or 2.8 percent, to finish trading at $12.66, while NetApp shares rose 88 cents, or 3.6 percent, to $25.63.