Capital spending will top $275 billion in 2011
Market Trend

Capital spending will top $275 billion in 2011

Capital spending is predicted to reach $275.7 billion this year, after increasing 2.9% from $267.9 billion in 2010.

Yankee Group found that the macroeconomic environment will stabilise this year, leading to growth in capital spending after two years of decline.

EMEA and Latin America will see the most capex growth, increasing by 5.1% and 6.2% respectively. Latin America is seeing demand for mobile broadband and value-added services, as well as aggressive investment by international operators such as Telefónica.

Asia-Pacific was more resilient than expected with spending levels among Tier 1 operators in China flatlining when they were expected to drop by 10%. In 2011, the region is expected to experience a year-on-year capex growth of 4.4%. North America’s capex is predicted to decline by 3%. Operators are expected to reduce spending from $70.8 billion in 2010 to $68.7 billion in 2011.

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