Surveys Now See Smaller Tech Spending Gains In 2004.(INTERNET & TECHNOLOGY)

Byline: BRIAN DEAGON

At a time when many surveys of business spending on technology show an upward trend, a few suggest a more cautious view is taking hold.

The monthly CIO Magazine Tech Poll, due out Monday, says chief information officers in November steeply lowered their views of how much their companies will spend on tech wares in the next 12 months.

Caution also is a key word in recent tech spending outlooks by Merrill Lynch & Co. and the Meta Group.

The CIO poll of 276 executives with CIO or similar jobs found that, on average, they expect their companies will spend 4% more on tech goods and services in the next 12 months than they spent in the last 12 months. That 4% figure isn't especially lower than other 2004 forecasts, but it's far south of the poll's findings in October, September and August. In those months, the CIOs predicted at least 5.9% spending growth the next 12 months.

"It does seem as though corporate spending is still lackluster, and the new CIO poll confirms that," said Ed Yardeni, chief investment strategist at Prudential Equity Group. Prudential, CIO Magazine and Deutsche Bank Securities do the monthly poll.

Merrill Lynch forecasts just 3% growth in 2004. Meta Group sees increases of 5%, though it says lower growth is possible.