Sept 28 Reuters IT services firm Accenture forecast fullyear earnings and firstquarter revenue below Wall Street targets on Thursday, signaling that high inflation and interest rates pressures will hurt demand through next year.

Shares of the company fell nearly 5 in trading before the bell after the company39;s fourthquarter revenue also missed estimates.

The U.S. Federal Reserve39;s forecast earlier this month that it would leave interest rates elevated for longer than widely expected, has added to concerns that enterprise spending will take longerthanexpected to return to healthy levels.

Indian IT services giant Infosys halved its fullyear revenue forecast in July, citing delayed decisionmaking on future projects from clients, while Tata Consultancy Services also flagged soft demand.

Accenture expects firstquarter revenue in the range of 15.85 billion to 16.45 billion, while analysts polled by LSEG forecast 16.43 billion.

The company also forecast fiscal 2024 adjusted earnings per share to be in the range of 11.97 to 12.32, below estimates of 12.45. The midpoint of its revenue growth forecast of 2 to 5 in local currency also fell short of estimates.

Unlike other tech executives, Accenture CEO Julie Sweet said in June she does not expect generative artificial intelligence to be a big growth driver next year, focusing instead on companies finishing their migration to the cloud.

Accenture39;s revenue rose 4 to 16 billion in the fourth quarter ended Aug. 31,…