UK IT investment holding up during recession

Total business spending fell during 2008 but hardware and software peaked in the last three months of the year, says government figures

Business kept spending on IT in 2008

UK businesses spent more on hardware and software in the last three months of 2008 than at any period of the year – despite the worst of the recession setting in at the same time.

The official Office of National Statistics (ONS) figures for business investment last year show that computer software and hardware accounted for 9.75 per cent of all spending in the private sector during the final quarter.

Software spending of £1.7bn was down slightly on the £1.8bn figure from the same period in 2007, but contributed to an annual investment of £6.5bn that was up from £6.3bn the year before.

Fourth quarter hardware spending was also £1.7bn, which was the same as the 2007 figure, although in total for 2008 the investment of £6.5bn was slightly down on the previous year’s £6.6bn.

The ONS report shows that UK IT spending held up far better than other sectors.

Overall business investment in all areas of spending during the final three months of last year was down 3.9 per cent from the previous quarter and 7.7 per cent on the same period in 2007.