Recovery in action? As Intel post best ever quarterly results

Businesses are upgrading their IT infrastructure, Intel reported monster Q2 earnings yesterday – the best in it’s 42 year history. From Daily Finance

Technology bellwether Intel (INTC) blew past Wall Street expectations Tuesday, reporting the best quarter in its 42-year history on strong corporate IT demand. The chip giant’s results give investors a cause for optimism heading into the third quarter.

The powerful performance by the world’s largest microchip maker offers further evidence that consumers and companies continue to increase their tech spending, a necessary step for economic recovery.

Bloomberg report Intel now expect 2010 to be a record year

Intel Corp., adding to evidence that the global economic recovery is taking hold, boosted its profit forecast for the year to a record after corporations resumed spending on computers.

The company, whose processors run more than 80 percent of the world’s personal computers, said yesterday that its gross profit margin will reach 66 percent this year. Intel’s second- quarter earnings and sales forecast for the current period also topped estimates.

Elsewhere Singapore grew 19.3% in the year from last June, and looks set to post GDP growth of 15% for 2010, AP report that some commentators feel this indicates the impact of Eurozone debt fears has been over-exaggerated.

The ministry raised its forecast for the city-state’s economic growth this year to a range of 13 percent to 15 percent from the previous forecast of 7 percent to 9 percent. It also raised its forecast for export growth as global demand has stayed strong amid Europe’s debt and fiscal crisis.
“This should reinforce the view that fears from the eurozone crisis may be exaggerated,” DBS bank said in a report.
Singapore, which has the highest percentage of millionaires in the world, is the first Asian economy to announce GDP results for the April-to-June quarter. The tiny island nation is often seen as a barometer of world demand because its economy — built on manufacturing and services like finance — is one of the most export-reliant in Asia.

Let’s hope so!

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  • Contacts in Seattle say economy is still sluggish and a lot of uncertainty still. Mostly there it is a lack of clarity/purpose from the Obama administration which seems unable to translate soaring rhetoric into soaring confidence.