Australia defies worldwide tech spending slump

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Australia defies worldwide tech spending slump

Forecasts have predicted Australia will defy a flattened worldwide IT spend, according to Gartner.

The industry analyst forecasts Australia's technology market to grow 2.8 percent in 2016, reaching AU$83.3 billion. That goes against global forecasts, which are expected to remain flat at US$3.41 trillion in 2016.

Services is still the biggest spending category, with software as the fastest growing segment. Sales of mobile phones, tablets, PCs and printers are expected to fall.

However, Gartner research vice president John-David Lovelock said forecasts did not take into account the UK's vote to leave the European Union.

"With the UK's exit, there will likely be an erosion in business confidence and price increases which will impact UK, Western Europe and worldwide IT spending," said Lovelock.

Communication services is still the biggest market segment at US$1.3 trillion despite falling 1.4 percent. Software is also the biggest growth market globally, with 5.8 percent growth to reach US$332 billion.

As previously forecast, devices sales will continue to shrink by 5.3 percent to US$627 billion, held back by lacklustre economic conditions and delayed PC buying after the release of Windows 10.

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