IT spending for American companies remains low in October, according to a report from Gartner released. The Gartner Technology Demand Index for October was 85, down from 87 the previous month. An index value of 100 means companies spent exactly what they had budgeted for the month.

But recovery may be fortcoming by 2004. The index points to a likely increase in spending in 2004 by mid-size and large companies which makes up for nearly 44 percent of total IT spending. If these companies spend more, it could drive the overall demand for IT products and services, the report indicated.

Recent surveys have suggested that a recovery is in sight for IT markets. Forrester Research this week reported that IT budgets expected to increase to $729.2 billion next year, up 1.7 percent from the level anticipated for this year. More companies are saying they will spend more than they did in this year, but the increases may not be dramatic, the report said.

By: DocMemory
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