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	September 7, 2004 The Lukewarm IT Recovery Continues 2004 IT Spending Growth Will Be 5% For US, 3% For Canada by Andrew Bartels with Tom Pohlmann, Natalie Lambert, Ryan Hudson

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Executive Summary

The US and Canada continue to show modest 2004 growth in IT spending of 5% and 3%, respectively. While certainly an improvement over the deep freeze in IT spending of 2001 to 2003, there is still no broad-based boom like that of 1998 to 2000. Q2 IT investment data and vendor financial results show the mixed results of this lukewarm recovery: Computer hardware is still doing well and communications equipment is rebounding, but they are offset by slowing software investments and IT compensation growth that is barely exceeding inflation, despite staffing levels starting to rise.

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