With inflation still rising, there have been more instances of corporate board rooms looking at trimming capital expenses.
As a result, there’s been news attention surrounding how consumers are dealing with it all.
Companies have been looking at delaying big tech purchases which might not be as necessary right now, a report from Seeking Alpha says.
Morgan Stanley analyst Erik Woodring looked at the technology hardware sector and concluded that there will likely be a more cautious approach to major tech purchases in the second half of the year.
According to Woodring, as companies have been working through a backlog of big tech orders in the past 18 months, the spending on hardware will likely grow this year at the slowest rate among big IT spending categories.
The report says there’s likely to be a 1.8% increase in the spending this year as opposed to 2021. But that comes as communications equipment spending will rise 3.4% and services will see a 3.5% rise.
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Woodring said he’s looking more cautiously at spending on personal computers, though there’s risk in everything from printers to flash storage and desktop equipment and other things that could be trimmed by corporate budget makers.
He also added that there are fears of a recession that could add to the cuts.
Amid dire news about the economy, a big price increase, combined with the dip in gas prices, could end up with a 1% advance in retail sales for June, PYMNTS wrote.
See also: June Retail Sales Rise 1% as Falling Gas Prices Offer Consumers Some Relief
That could reverse a prior month slump as it also shows more resilience and financial creativity for customers who are hard on cash.
The report notes that the Commerce Report from July 15 showed that the decline of 0.3% from May had now been dialed back to a 0.1% dip.
