Business Confidence Bouncing Back

Business confidence is at a yearly high. That’s according to CompTIA’s Business Confidence Index for the fourth quarter.

The results suggest to CompTIA that industry execs feel generally positive about their business prospects over the next six months. Keep in mind that the survey was done before the midterm elections, so it doesn’t account for any positive or negative feelings emerging as a result.

“The gains in this quarter’s IT Industry Business Confidence Index can likely be attributed to several factors,” said Tim Herbert, vice president, research and market intelligence, CompTIA. “Economic growth has been steady, though unremarkable; IT employment remains robust; and the wave of innovation that started several years ago continues to generate strong demand from buyers.”

Despite the generally positive trending in the Index over the past 12 months, IT industry executives still express some concerns over factors that negatively impact growth. Nearly half (45 percent) report concern over price-sensitive customers hesitant to spend; while 38 percent worry about downward pressure on margins – an eight percentage-point jump from Q3.

“Downward trending prices and commoditization are ever-present realities of doing business in the technology sector,” Herbert noted. “This is great for customers, but can present challenges for IT companies, especially those not equipped to wrap services and solutions around their offerings.”

CompTIA’s IT Industry Business Confidence Index is based on a mid-October online survey of almost 300 U.S. IT industry companies, including micro, small, medium and large firms.

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