Further signs of reduced tech spend

Dell today issued a statement saying that customers were cutting back further on technology spending- See Reuters Dell sees further signs of weak tech spending. Dell shares fell 10% (6.30pm UK) as a result.

There are many IT bell-weathers and Dell is one of them. When tough times beckon, IT contractors and PC/laptop purchases are usually the first to be affected. Afterall, if you are laying off staff you hardly need to buy new laptops. Unfortunately, you can imagine warehouses full of redundant PCs soon. But all this works through to the rest of the IT sector in time.

Events are currently moving so fast that everyday I fear the downturn will come sooner and be steeper than I had previously predicted. And I should remind you it was me who was only a few months back labelled as 'too gloomy'!