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Tech Industry

JPMorgan cuts 2013 forecast for IT spending

Global IT spending is now slated to rise just 0.6 percent this year, down from the investment firm's prior forecast of 1.2 percent.

IT spending is likely to be even lower this year than initially expected but should start to revive in 2014, according to JPMorgan Chase.

An new estimate in a report released Thursday by JPMorgan Chase analyst Mark Moskowitz calls for growth in IT spending of just 0.6 percent this year. That's down from the previous forecast of 1.2 percent.

Moskowitz expects businesses to spend less on IT hardware, which accounts for a huge part of the lower estimate. Companies have been shifting more of their cash away from traditional computers toward mobile devices.

Moskowitz now expects spending on PCs to drop by 8.3 percent, down from the prior estimated decline of just 1.8 percent. But he believes that spending on tablets will offset some of the downturn for computers. The server and storage market will also be sluggish this year, according to Moskowitz, though IT services will enjoy a revival.

As spending on software and services increases next year, Moskowitz sees global IT spending jumping to 3.6 percent.