Tuesday is the new Monday as we do a market review.
As Election Day approaches on November 5, a GoDaddy survey reveals that small business owners are increasingly concerned about inflation, taxes, and the cost of living. The survey indicates that 93% of respondents prioritize addressing wage and cost inflation, while 50% see tax reform as essential. Additionally, 32% believe rising housing costs hinder their ability to achieve the “American Dream.” The survey also highlights that 18% of small business owners have changed their voting behavior since starting their businesses, with 51% anticipating a moderate to major impact from the elections on their future. Despite economic uncertainties, 77% of small business owners aim to grow their businesses in the coming year, although only 27% expect increased revenue in the next six months.
The impacts of Hurricanes Helene and Milton are also factors to consider, along with the ongoing Boeing strike. These events are expected to distort critical economic metrics, complicating job market assessments. Goldman Sachs estimates the Boeing strike will reduce October job growth by approximately 33,000 positions, while Hurricane Helene could account for another 50,000. The current “reference week” for October job numbers may also see distortions as workers in Florida affected by Hurricane Milton are not counted if they are temporarily out of work. RSM’s chief economist, Joe Brusuelas, predicts that October’s job figures may show flat or negative growth in total employment and an increase in unemployment, indicating that clear insights into the economy may not emerge until late 2024 or early 2025. Historical parallels are drawn to August 2005, when Hurricane Katrina and subsequent events created a similar “data fog” that obscured underlying economic trends.
A recent report by Netskope reveals that 81% of retail Chief Information Security Officers (CISOs) have increased their risk appetite, significantly exceeding the cross-sector average of 57%. The report surveyed over 1,000 CISOs globally and highlights that 100% of retail CISOs view conflicting risk appetites within the C-suite as a critical issue. Despite this, less than 2% classify their risk appetite as low, while 23% perceive their CEOs’ risk appetite as low. The findings suggest that retail CISOs are increasingly positioning themselves as business enablers, with 98% identifying this role, compared to a cross-sector average of 59%. Additionally, 72% believe adopting a zero-trust approach will help balance conflicting priorities effectively. The report emphasizes retail CISOs’ need to focus on business enablement and risk in their strategic discussions rather than reverting to technology-centric conversations.
Gartner, Inc. reported that worldwide PC shipments totaled 62.9 million units in the third quarter of 2024, reflecting a 1.3% decline from the same period in 2023. This downturn follows three consecutive quarters of growth in the PC market. Mikako Kitagawa, Director Analyst at Gartner, noted that despite introducing Windows-based AI PCs, the demand did not significantly increase, as buyers are yet to recognize their benefits. The U.S. market saw a 5.6% growth, shipping over 17 million PCs, driven by stable economic conditions and strong demand from the public sector and education, particularly for Chromebooks. In contrast, the EMEA region experienced a 1.5% decline, attributed to distractions from political events and major sports.
Uncertainty is the theme—from SMB concerns about inflation to job market volatility. While owners are optimistic long-term, short-term spending might be cautious. Economic uncertainty often leads to cautious hiring and budget freezes, which could directly affect the IT and services sector. If SMBs are uncertain about hiring, they may look to automation and outsourcing to manage workload without increasing headcount. That’s ROI to focus on. Admittedly, that’s always ROI to focus on; reinforce it here.
The cool reception to AI PCs indicates that while the hype is strong, the tangible benefits are still not resonating with the market. This mirrors broader skepticism toward some AI offerings that lack clear, immediate ROI. I’m seeing the theme.