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TECH ECONOMY Spending For Tech Grows Just 5.2% In Last 12 Months.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| June 04, 2001 | COPYRIGHT 2001 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Antonio A. Prado

The tech wreck is still wrecking. Corporate tech spending growth has plungedfor the sixth straight month, says a new poll of chief information officers.

Deutsche Banc Alex. Brown and CIO Magazine's Technology Growth Current Indexplunged 50% to 0.6 in May from April's 1.2 reading. The future growth index also fell to 0.6 from April's 1.1.

The indexes are based on a poll sent to more than 1,100 chief information officers at firms of different sizes in a variety of industries. Companies polled spend at least $50 million a year on information technology.

Based on the indexes, IT spending grew just 5.2% over the 12 months through May.

That's the first time growth over a year's period fell into the single digits.

The growth drop "is pretty substantial," said Debbie Johnson, an economist at Deutsche Banc in New York. "It's basically been cut in half."

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