IBM falls as enterprise-spending constraints choke consulting demand

FILE PHOTO: A logo of IBM is seen at the Mobile World Congress in Barcelona, Spain February 28, 2018. REUTERS/Yves Herman/File Photo

(Reuters) - Shares of International Business Machines fell more than 8% in premarket trading on Thursday, as its consulting business faces pressure from enterprises tightening their budgets to cope with an uncertain economy and high interest rates.

Weakness in smaller discretionary projects affected the consulting segment, but analysts at J.P.Morgan said the backlog could help reaccelerate the business through 2024.