Taking the Pulse of the U.S. Nonfinancial Corporate Sector

This IDC study examines the 4Q07 financial flows data for the nonfinancial corporate sector. The goal is to assess the current state of the financial accounts of the nonfinancial corporate sector and look at how the current crisis in the U.S. financial markets will impact that sector's ability to fund investment projects in general and IT initiatives in particular.

"The resilience of the nonfinancial corporate sector and its potential to maintain and grow investments will determine the severity and the duration of a consumer-induced general economic downturn, says Anna Toncheva, a research manager in the Leading IT Indicators program. "The analysis of the corporate sector balance sheet reveals some emerging challenges to funding investment projects in 2008. However, the magnitude of any IT retrenchment should be smaller compared with overall gross private domestic investment."