Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

5 of 5
BACKNEXT
Tech spending
Amid a deep recession and credit crunch, businesses sharply cut back their tech spending in the first half of the year.

U.S. IT spending tanked 13.5% in the first quarter and 8% in the second quarter, according to Forrester Research.

But analysts say the massive cutbacks were a bit of an overreaction, and they expect a rapid rebound toward the end of the year as economic conditions improve. Forrester predicts a 6% decline in spending in the third quarter, followed by a 4% increase in the fourth quarter.

"Vendors can start to look beyond the downturn and get prepared for a strong tech recovery in late 2009 and 2010," said Andrew Bartels, analyst with Forrester.

Experts expect business' purchases of computers, communications equipment and software to tick up incrementally in the second half. But IT services are forecast to make a much stronger recovery, and really lead the change to a strong tech spending rebound by the end of the year.

More galleries
Last updated July 02 2009: 3:59 PM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
The 7 biggest investment mistakes celebrities make From betting too heavily on real estate to overestimating future earnings, here are 7 of the most common money mistakes that celebrities make. More
Cotton candy, toothpicks, pet gel -- these products are all made from marijuana Legal cannabis, an estimated $5.4 billion industry, is drawing in entrepreneurs with a variety of innovative products -- from skin patches to pain relief gel for pets. More
Coolest hotel bars for business travelers CNNMoney asked two concierge services for high-flying business people what hotel bars they'd recommend in 5 major U.S. cities. Here are their favorite spots. More

Special Offer