{"id":348526,"date":"2025-09-27T15:58:34","date_gmt":"2025-09-27T20:58:34","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2025\/09\/27\/growth-reliance-on-the-tech-spending-boom\/"},"modified":"2025-09-27T15:58:34","modified_gmt":"2025-09-27T20:58:34","slug":"growth-reliance-on-the-tech-spending-boom","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2025\/09\/27\/growth-reliance-on-the-tech-spending-boom\/","title":{"rendered":"Growth Reliance on the Tech Spending Boom"},"content":{"rendered":"

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Two interesting pictures. First, the reliance of US GDP growth on Tech Spending.<\/p>\n

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Source:<\/strong> DB, 24 Sep 2025.<\/em><\/p>\n

The second, from the OECD\u2019s Economic Outlook Interim Report (Sept 2025).<\/p>\n

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Source:<\/strong> OECD, <\/em>Economic Outlook Interim Report (Sep. 2025), Figure 9.<\/em><\/p>\n

Since the CPI has risen about 23% since January 2021, then the LSEG ex-technology index has risen only about 20% in real (CPI-deflated) terms, or a little more than 5% per year.<\/p>\n

Another way to look at this concentration of returns is to consider that in nominal<\/em> terms, the Russell 2000 for small cap firms is at about the same level as at the end of 2022.<\/p>\n

So, continued GDP growth in the US relies upon a continuation of the boom in IT-related stocks and investment.<\/p>\n

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