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Forrester Partners With ITAA To Measure The Health Of The US IT Industry

The News Is . . . OK Forrester and the Information Technology Association of America (ITAA) have created a quarterly index to measure the health of the US technology sector in terms of demand forces like CIO spending outlooks, supply factors like the health of venture capital (VC) funding, and the strength of US-based technology vendors based on revenues, profits, and market valuations. Since we began tracking these data in 2003, the index rose steadily through Q4 2004 and then dipped in early 2005. In Q3, the health of the US tech sector rose 3.9 points to nearly match its three-year high. The largest gains for the quarter occurred in the demand component of the index, and nearly all forward-looking measures were up. While the third quarter's results are reason for optimism about the US tech sector, the saw-tooth pattern for the index over the past year suggests a mix of moderate declines and moderate increases over the coming year.

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