CAMBRIDGE, Mass. — U.S. busi- nesses reduced 2001 computer-related spending more than was expected before the Sept. 11 terrorist attacks and will spend less than forecast next year, a market analyst's report said Wednesday.
Before the attacks, information-technology spending in 2001 was estimated to fall 3% from 2000, according to Giga Information Group Inc. Spending is now estimated to decline by as much as 5.3% this year and recover next year by 3.9%, the report states. Giga had previously forecast a 2002 spending increase of 7%.
Corporations cut information technology spending this year as the U.S entered a recession in March and amid concerns about the severity of the slumping economy. The attacks further undermined corporate and consumer confidence, the report said.
"It's very clear that Sept. 11 was a major shock and affected the attitudes of those responsible for making decisions on spending," said Andrew Bartels, Giga vice president and the report's lead author.