VARs warned of slow down
High Oil prices starting to affect business confident, market watcher claims
Investment in IT could slow down over the next nine months as business confidence dips due to the effects of high oil prices, accountancy firm BDO Stoy Hayward has warned.
Peter Hemington, a partner at BDO, said: “Generally, investment in IT equipment has picked up quite a lot in the last few years, mainly due to high business confidence.
“However, the effects of high oil prices and consumer spending slow-down have knocked business confidence, which could effect companies’ investment plans. The one spending area that gets dropped first is investment in IT. So the next six to nine months could be tough for resellers.”
According to BDO’s latest Business Trends Report, both the manufacturing and service sectors have experienced testing months, with the former continuing to feel the backlash of oil prices and the latter suffering from weakened high-street activity.
The firm believed interest rates will not be cut again until early 2006.
Helen Slinger, head of marketing at online retailer Ebuyer, said: “The news from BDO Stoy Hayward is the latest in a raft of reports revealing the extent of the high-street slow-down.
“I can’t speak for the entire online retail industry, but this slow-down hasn’t impacted on our sales. Although competition among PC retailers is at its highest and trading conditions on the high street are tough, Ebuyer still continues to experience growth within the market place.”