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VSS: Communications Industry to Grow 5.2% through 2016

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September 26, 2012 -- Spending within the U.S. Communications Industry to grow at a 5.2% CAGR to $1.455 trillion by 2016, almost two times the growth rate during the past five years, according to the 2012 Forecast by Veronis Suhler Stevenson (VSS), a well-respected global capital private investment firm.  At that pace, the Communications Industry will remain the fifth-largest industry among 15 economic sectors in 2016.

The VSS Communications Industry Forecast 2012-16 reveals that U.S. Communications Industry spending grew 4.4% in 2011 despite a sluggish economy in which nominal Gross Domestic Product expanded 3.9%. Spending rose at a compound annual growth rate (CAGR) of 2.7% in the 2006-2011 forecast period, surpassing GDP by a 0.3 percentage point.

In 2012, spending within the U.S. Communications Industry will increase 5.2% reach $1.189 trillion as consumers and businesses increasingly embrace digital technology and return to spending levels not seen since before the recent worldwide economic downturn.

Industry growth Driven by Increases in Digital Spending

Digital communications and services has firmly established itself as the driving force of growth across all of its sectors. In 2006, VSS found that digital-related expenditures represented 16.7% of total Communications Industry spending; it reached 26.5% in 2011, and VSS projects it will grow to 39.3% by 2016.

Last year, digital-related expenditures accounted for 25.1% of consumer and advertising spending and 34.6% of institutional spending, and VSS expects those percentages to increase to 39.3% and 48.9%, respectively, by the end of the forecast period.

Key Trends in  5 Year  Forecast Period for Industry Sectors: All six sectors will post gains

VSS projects that all six Industry Sectors will post CAGR gains in the 2011-2016 period, with the biggest percentage increases coming in Targeted Media, and Business & Professional Information & Services, and the largest increase in spending coming from Targeted Media, which will increase from $200.38 billion in 2011 to $285.97 billion in 2016.








Source:  VSS, New VSS Forecast 2012-2016: U.S. Communications Industry Spending Increased 4.4% to $1.129 Trillion in 2011; Expected to Rise 5.2% in 2012 to Reach $1.189 Trillion, September 26, 2012.