By Agence France-Presse U.S. business spending on information technology is recovering, but corporations will remain cautious, a research firm said Nov. 12. Forrester Research Inc. estimates that IT spending will grow 4% in 2004, although its survey of top technology executives found they expect budgets to grow an average of just 1.7%. Even though the U.S. economy grew at a blistering 7.2% pace in the third quarter, companies are hesitant about spending for new technology, Cambridge, Mass.-based Forrester noted. "Despite the improving economic picture, 2004 IT budgets remain conservative," Forrester said in issuing its outlook. "We estimate that actual IT spending will catch up with the economy and grow 4%. Consumer sectors, e-commerce and security initiatives, and pent-up demand for servers and PCs will lead the way." Forrester estimates that 2003 will end up showing 1.3% growth in IT spending after a decline in 2002. Forrester surveyed 800 technology decision-makers at North American firms for the survey, which showed just 32% expect an increase in IT spending, with 19% expecting a decrease. Some 43% expect no change in IT spending. Copyright Agence France-Presse, 2003
