CIOs "bullish" on health of economy and IT spend

CIOs' confidence in the current health of the economy and IT spending remains "bullish", according to the latest research from analyst Forrester.

The quarterly poll by Forrester gauges the confidence of 151 CIOs of North American companies on current and future business conditions, future IT spending and expectations.

In the latest poll CIO confidence has risen significantly since the second quarter but Forrester warns the disruption caused by Hurricane Katrina could have a negative impact on expectations and confidence in the fourth quarter.

Almost nine out of 10 (86 per cent) CIOs reported a strong or very strong business climate in the third quarter compared to 70 per cent in the second quarter, while 78 per cent reported some increase in IT spending compared to last year.

IT spending projections for the rest of the year also improved with only six per cent predicting they will underspend their budget, while a quarter expect to overspend.

Confidence about the future business climate has also picked up significantly compared to the last quarter, with 86 per cent of CIOs saying they expect the climate to continue improving in 2006.

The research said: "Since consumers seem to be shrugging off the effects of higher energy prices and interest rates through July, companies and their CIOs seem to have done the same."