Tech recovery imminent - survey

An international survey by Eurocom PR Worldwide suggests that recovery in the technology market will have kicked in by September.

The study amongst almost 200 senior technology executives in 16 countries finds that almost 50% believe that recovery will begin in the second or third quarters of this year. One in three believes that the recovery has already begun.

"Despite the increase in IT equities over the past year, the signs of a full blown recovery have been patchy but this survey suggests confidence returning to the sector for the first time in three years," commented Ronnie Simpson of Simpson Financial & Technology PR, the Irish partner of Eurocom Worldwide.

Three quarters of the respondents (76%) are more confident about tech prospects in 2004 than they were in 2003. One in five (19%) report the same level of confidence while 5% remain pessimistic.

57% of respondents expect to increase jobs over the next six months and 39% say that recruitment is currently on hold.

The sector is more bullish on revenues than last year with 78% predicting an increase in sales over the next six months compared to 54% in the 2003 survey. One in five (19%) anticipate flat sales compared to 34% last year while just 3% are expecting lower revenues (11% in 2003).

The biggest threat to revenues is seen as a slowdown in the global or US economy.Continuing nervousness over global terrorism ranks in the top four dangers to recovery.