Global IT Spending Growth Outlook Increases, As Dollar Falls

Global spending on information technology in 2017 is now expected to rise 2.4% above last year to $3.48 trillion, up from a previous forecast of 1.4% growth, according to research and advisory firm Gartner Inc. . The increased outlook is a result of the U.S. dollar's decline against many foreign currencies, Gartner said. The U.S. Dollar Index , which values the dollar against a basket of currencies of many major trading partners, has declined 6.3% year to date. The biggest growth is expected to come from spending on enterprise software, which is seen rising 7.6% to $351 million. The most spending is projected to be on IT services, which is seen rising 3.1% to $922 billion. For 2018, Gartner expects global IT spending to increase 3.5% to $3.60 trillion. The SPDR Technology Select Sector ETF was up 0.3% in morning trade, putting it on track for a fifth-straight gain. It has rallied 16.7% year to date, while the S&P 500 has gained 9.3%.