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E-CONOMY New Data Show A Tech Recovery Is No Longer Near.(INTERNET & TECHNOLOGY)
Byline: Antonio A. Prado
Just when it seemed the tech economy was poised to recover, signs of a possible rebound appear to have faded.
Economists hadn't been sure tech had hit bottom. But now, after the Sept. 11 terrorist attacks, they say it could take a year for tech spending to recover.
Among the latest weak signs is September's Deutsche Banc Alex. Brown and CIO Magazine tech growth indexes, due out Monday.
Corporate information technology spending rose just 3.5% for the 12 months ended in September vs. the year-earlier period.
The outlook isn't much better. IT spending is expected to grow at a 3.7% rate over the next 12 months.
Tech spending "has obviously been delayed as a result of the shock to our nation, the economy and to confidence," said economist Ed Yardeni, chief investment strategist at Deutsche Banc in New York.
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