Trimming estimates

The Morgan Stanley equity research team were mid-way through their quarterly survey of Chief Information Officers (CIOs) when economic uncertainty pushed equities sharply lower at the end of February. The survey data revealed that CIOs polled before 20 February were notably more optimistic about their spending plans for 2025 than those polled later. In total, CIOs polled before 20 February expected to increase information technology (IT) budgets by 4.1% in 2025 versus CIOs polled later who expected to increase IT budgets by 3.2%. By segment, hardware estimates were impacted the most, from 2.2% to 0.7%. Following the US ‘Liberation Day’ tariffs announcements, and the subsequent pause in tariffs announced yesterday, certainty around investment planning continues to erode.

Source: Morgan Stanley, April 2025