NEW YORK -- Deutsche Bank Equity Research today cut its 2009 EMS industry revenue outlook to a 7% drop.

In a brief, Sherri Scribner wrote, "Since EMS companies reported third-quarter results, the economy and the outlook for tech spending have significantly deteriorated. With few exceptions, technology companies have become more cautious in recent weeks, with many reducing prior guidance due to further weakening in end demand. Visibility remains extremely limited with many companies declining to offer guidance for 2009."

EMS revenue is highly correlated to IT spending and GDP, but with higher volatility, Scribner wrote, noting IDC's recent forecast of a 4% drop in IT hardware revenue in 2009. Consumer segments will drop 9%, and emerging segments less so, DB predicted.

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