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Technology spending to remain weak

Technology spending should remain "anemic" this year with small incremental growth in 2005 despite a much-hoped-for recovery, as U.S. tech executives see little reason to spend, according to a Goldman Sachs survey.
/ Source: Reuters

Technology spending should remain "anemic" this year with small incremental growth in 2005 despite a much-hoped-for recovery, as U.S. tech executives see little reason to spend, according to a Goldman Sachs survey.

"We are now facing another year of modest tech spending," said Laura Conigliaro, an analyst at Goldman Sachs, in a report. "CIOs (Chief Information Officers) lack an urgency to spend."

The report, which tracked October spending patterns, showed a seasonal rise of about 3.4 percent, up from 0.4 percent in August, a traditionally slow spending period.

Goldman said 2005 technology capital spending is expected to rise 2.5 percent, up from a prior expectation of about 1.9 percent.

Technology executives were "slightly more optimistic" than in August.