Tech Orders Dip, But So Do InventoriesTech Orders Dip, But So Do Inventories

A new government report could put a damper on what appears to be a revived economy, especially in the tech sector. The Commerce Department says orders and shipments for computers fell 1.2% and 4.2%, respectively, in November. Orders and shipments for computer wares rose in October after falling in September.

By comparison, overall durable goods orders fell 1.4% in November, with shipments remaining virtually unchanged from the previous month.

On a positive note, inventories of computers continued to decline, by 0.2%, in November. Inventories for all durable-goods makers fell 0.2% in November as well.

The decline in computer orders and shipments represents a mere bump in a growing economy, says Knud Jacobsen, principal at the economic consulting firm Rational Perspectives and president of the Silicon Valley Round Table, a group of economists. Many corporate leaders remain too gun shy in investing in IT, Jacobsen says, but as CIOs demonstrate the productivity benefits from spending, the locks to the coffers should come off.

"Once CEOs realize they can be at the forefront of their industries," he says, "there'll be a demand for technology that will give them a specific edge against their competitors."