Slow down in corporate spending? Reports from Cisco and IBM seem to reflect that

Here is a another relevant article from Bloomberg.
Quotes:
“It’s been business investment, particularly technology, that’s been in the driver’s seat,”… “unless something else picks up the pace, it means the outlook for the economy is going to be that much dimmer.”

“CEOs see mixed signals and they’re a little bit slower to put their foot down on the gas pedal, and they pick their foot off the gas pedal a little bit faster,” John Chambers, Cisco’s chief executive officer
“The weakness in this type of services could lead investors to question broader” t
To be sure, Cisco said it hired 2,000 workers last quarter and would add an additional 3,000 to help its businesses grow globally. That signals confidence in the recovery, said Simon Leopold, an analyst at Morgan Keegan & Co. in New York.

Stats:
Corporate investment is among the few remaining sources of economic growth as the effects of government stimulus measures wane and unemployment remains stuck near a 26-year high. Economists this week cut their forecasts for the second half of the year as the more than 8 million jobs lost during the recession hamstring consumer spending.

The Institute for Supply Management’s manufacturing gauge dropped for a third month in July, signaling a cooler pace of factory growth, which accounts for 11 percent of the economy
To be sure, Cisco said it hired 2,000 workers last quarter and would add an additional 3,000 to help its businesses grow globally. That signals confidence in the recovery, said Simon Leopold, an analyst at Morgan Keegan & Co. in New York.

IBM, the world’s biggest computer-services company, last month reported revenue that missed analysts’ estimates, citing a decline in services-contract signings. Signings fell 12 percent to $12.3 billion, the second straight quarterly drop in contracts for services, which make up more than half of IBM’s total revenue.

http://www.bloomberg.com/news/2010-08-12/cisco-ibm-weakening-sales-may-signal-slowdown-in-u-s-corporate-spending.html

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