The big commercial purchasing that helped fuel electronics shipping over the past two years is on hold. The Wall Street Journal reports that companies, governments and school districts that bulked up on computers during the pandemic are drastically scaling back.
The lull in purchasing has worsened throughout the year as high inflation, rising labor costs and recession fears have triggered a reassessment of procurement budgets.
The decisions are behind a worldwide slump in demand for personal computers (PCs) that is hitting suppliers like Dell Technologies and HP and has started rolling across the airfreight sector. Global shipments of desktop and laptop computers fell in the third quarter by a record 18%, says market research firm Canalys, with notebook shipments particularly hard hit.
Overall U.S. consumer spending across the videogame business also fell 13% in the second quarter, suggesting the slump in demand for electronics goes beyond PCs.
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