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EDP service providers: first signs of recovery but clear investment weaknesses and declining employment

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  • Joachim Gürtler

Abstract

According to the 29th business survey of EDP service providers conducted in April and May 2002, the business climate improved somewhat for the second time in succession, but previous-year values were clearly not met. The improvement in confidence is based solely on the favourable expectations for the coming half year. In contrast, the current business conditions deteriorated in the first quarter 2002. For the first time the negative assessments of business conditions predominated slightly. Only 20% of the enterprises judged their business situation as favourable, 57% as satisfactory and 23% felt their present situation is poor. Already since the summer months of 2000, job growth lost considerable momentum; in the meantime the number of employees has fallen. The clear reserve of the medium and larger service enterprises is striking. Also the six-month outlook is marked by caution. Employment will stagnate at best, and worries over low order reserves is increasing fast. Complaints over lack of specialists have been largely silenced.

Suggested Citation

  • Joachim Gürtler, 2002. "EDP service providers: first signs of recovery but clear investment weaknesses and declining employment," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 55(12), pages 21-25, June.
  • Handle: RePEc:ces:ifosdt:v:55:y:2002:i:12:p:21-25
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    File URL: https://www.ifo.de/DocDL/ifosd_2002_12_4.pdf
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    References listed on IDEAS

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    1. Joachim Gürtler, 2001. "Harder times ahead for EDP service providers?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(06), pages 42-45, July.
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    More about this item

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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