Positive Sentiment Grows in Latest CompTIA IT Industry Business Confidence Index

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May 02, 2012, 09:15 ET

DOWNERS GROVE, Ill., May 2, 2012 /PRNewswire-USNewswire/ -- Improving economic fundamentals and solid customer demand for technology products and services helped boost positive sentiments in the latest CompTIA IT Industry Business Confidence Index, the quarterly survey from the leading non-profit association for the IT industry.

The CompTIA IT Industry Business Confidence Index recorded a gain of 4.6 points to 56.7 on a 100-point scale during Q2. The Index – an aggregation of opinions on the U.S. economy, the IT industry and one's company – is at its highest level in more than a year.

IT industry executives expect momentum to continue, leading to incremental gains in the index and the potential to push sentiment further into positive territory in 2012.

The U.S. economy component of the CompTIA IT Industry Business Confidence Index increased 5.5 points from Q1 to Q2 and is projected to increase another 6.6 points over the next six months. The economy rating has been an ongoing drag on overall sentiment for many quarters.

"Compared to other economic recoveries, this one still leaves a lot to be desired," said Tim Herbert, vice president, research, CompTIA. "Progress in some areas has been slow, but we're finally seeing signs of renewed stability. The IT sector continues to be an important player in driving economic and job growth."

Net positive sentiments for all three index components increased in Q2. For the U.S. economy, net positive sentiment improved by 11 percentage points, to 21 percent; the IT industry up 12 points to 66 percent net positive; and company sentiment up 6 percentage points to 68 percent.

Several factors – consumers getting their debt situation under better control; modest improvements in the housing market; growing cash reserves held by many businesses; and an unemployment rate that continues to decline, though slowly – may have contributed to the somewhat favorable feelings about the economy.

Herbert cautioned, however, that businesses have seen this pattern before, where a rebound in confidence doesn't quite take hold and the economy takes a step back into a period of volatility and paralysis.

The CompTIA IT Industry Business Confidence Index for Q2 is based on an April 2012 survey of 433 IT companies.

CompTIA is the voice of the world's information technology industry. Visit www.comptia.org or follow CompTIA at www.facebook.com/CompTIA and twitter.com/comptia.

SOURCE CompTIA