US retail sales saw a surprising rebound in June, rising by 0.6% following a 0.9% decline in May, according to data from the Commerce Department. This increase exceeded most economists’ expectations and was driven by broad gains, particularly a 1.2% rise in sales at auto dealerships. However, analysts have raised concerns as the figures are not adjusted for inflation, suggesting that some of this rebound may stem from rising prices rather than an increase in consumer demand. Notably, June’s inflation report indicated significant price hikes in categories vulnerable to tariffs, such as furnishings, appliances, toys, and sporting goods. Additionally, sales at restaurants and bars, which serve as indicators of discretionary spending, also rose in June, offering a glimmer of optimism amidst worries about consumer health.
Forrester Research recommends that technology leaders adopt cautious budgeting and investment strategies for 2026 due to ongoing economic volatility. According to their recent Budget Planning Guides, 86% of technology leaders expect to see increased budgets next year, though with a more conservative outlook than in previous years. The financial services and healthcare sectors anticipate double-digit percentage growth, mainly driven by investments in generative artificial intelligence, analytics, and threat intelligence. As leaders prepare for both budget cuts and potential investment opportunities, Forrester highlights the importance of scenario planning and ongoing, low-cost experimentation to navigate the current economic landscape.
Forrester Research urges IT leaders to eliminate legacy technology debt to manage the rising risks linked to global instability. The report stresses that operating with outdated technology not only increases costs but also blocks the introduction of new capabilities. According to Forrester, 86% of technology leaders expect their budgets to grow in 2026, with 14% predicting double-digit increases. The report highlights key growth areas in IT investment, including generative artificial intelligence, product analytics, and threat intelligence. It also recommends outsourcing support for legacy systems, which can free up resources to build modern, flexible technology infrastructures. As IT departments explore innovative solutions, Forrester encourages experimenting with new technologies that could generate significant value in the coming years.
U.S. firms are increasingly relying on service providers to develop and manage AI-ready hybrid cloud infrastructure, driven by a rise in demand for better scalability, connectivity, and compliance in data center services. According to a report by Information Services Group, published on July 15, 2025, the quick adoption of technologies like generative artificial intelligence and large language models has created an unprecedented need for data processing and storage, making data centers vital for enterprise operations. The report emphasizes that service providers are offering a range of managed services, such as observability and automation to improve cloud operations, along with frameworks to control cloud costs.
Why do we care?
Retail sales are up—on paper. But remember, these numbers aren’t inflation-adjusted. Are people buying more, or just paying more? Meanwhile, tech hiring shows a 1.2% gain, but software development is slowing while cybersecurity and infrastructure surge.
Forrester’s saying budgets will grow in 2026, but don’t get too excited. That growth could just mean shifting dollars around—most likely toward AI and threat intelligence. And let’s be real: enterprises are outsourcing hybrid cloud management not because it’s sexy, but because it’s a mess. Forrester’s cautious tone is key. The call for scenario planning and eliminating legacy debt shows that enterprises are still wary. Generative AI, analytics, and threat intelligence investments align perfectly with managed service offerings that help clients modernize safely.
This is the MSP playbook for 2026. Forget chasing shiny AI toys. Focus on helping customers kill off their legacy tech, tighten up hybrid environments, and actually control their costs. The winners here won’t be the ones stacking the most tools—they’ll be the ones solving boring, expensive problems.