Economic slowdown hits Google, Microsoft: Sales decreases  

Alphabet—the owner of Google and YouTube—has seen a dramatic decline in sales as companies limit their spending on digital advertising.

The IT giant reported that sales increased merely 6 percent to $69 billion in the three months ending on September 30 contrasted to a surge of more than 40% during the same time the previous year.

It represented the company’s lowest growth in nearly a decade outside of the start of the pandemic and this news has increased worries about an economic slowdown.

In response to reduced sales of computers and other technologies, Microsoft also reported a slowdown in growth on Tuesday. 

In response to concerns that escalating costs and interest rates may push the global economy into recession, consumers and companies all around the world have reduced their spending.

American companies have also been affected by a strong US currency, which has increased the cost of exporting products.

Alphabet's profits fell by over 30% to $13.9 billion in the quarter, declining for the first time since the company began disclosing its YouTube ad income to the public.

Alphabet CEO Sundar Pichari stated, "We're narrowing in on a clear set of product and business priorities.

The IT conglomerate was "investing wisely for the long run and being responsive to the economic circumstances," Pichai added.

Microsoft said that its revenue for the three months ended in September increased 11% to $50.1 billion.

Due to decreased demand, PC sales and growth in its cloud computing segment saw their worst quarterly revenue increase in the previous five years.

Additionally, sales of Xbox video games also declined.

Big tech companies saw their sales and share prices surge during the pandemic, as locked down consumers became more reliant on technology.

However, given the current scenario, the sector's prospects appear to be less promising.