The CompTIA IT Industry Business Confidence Index declined slightly in Q3, but still remains firmly in positive territory for 2014.
The Q3 Index stands at 60.1 on a 100-point scale, down from 61.3 in Q2. The forward looking component of the Index projects a gain of 2 points over the next six months, suggesting a modest degree of optimism for the balance of 2014.
The index is based on IT executives' opinions of the U.S. economy, the IT industry and their own company. It is produced by CompTIA, the IT Industry Association.
Three in four companies surveyed said they are on target or ahead of their 2014 revenue goals at the midpoint of the year. By comparison, at the halfway point of 2013, 68 percent of companies were on target or ahead of revenue goals; while 32 percent lagged behind their goals.
Broken down by company size, 93 percent of medium IT firms and 80 percent of large companies are at or above their revenue targets for 2014. Among small companies, 74 percent said they are on target or ahead of goals. Among micro firms, 58 percent fall into that category.
Industry executives express concern over a number of factors that could derail progress. Topping their list is concern over price sensitive customers who may be reluctant to spend. This was cited by 44 percent of executives surveyed.
"Closely related is concern over downward pressure on margins," said Tim Herbert, vice president, research and market intelligence, CompTIA. "With an ever-expanding array of technology solutions available at a range of price points, cost-conscious customers have more options than ever to optimize their IT spending."
Additionally, the results showed a slight uptick in concern over labor costs for IT workers, increasing 4 percentage points over the previous quarter's rate of 24 percent.
CompTIA's IT Industry Business Confidence Index is based on a July 2014 online survey of 293 IT industry companies. The full report is available at http://www.comptia.org/resources/it-industry-business-confidence-index-q3-2014