After three months of consistent IT spending among U.S. businesses, levels dipped precipitously in August because of weakness in small and large businesses, according to the Gartner Technology Demand Index, an index included in a monthly economic indicator service launched by Gartner, Inc. Despite the drop in those segments, the Index shows that midsize businesses are exhibiting strong IT demand.

According to a weekly poll drawn from a 20,000-member Gartner panel of IT decision makers from small, midsize and large businesses, U.S. enterprises spent below their budgeted levels, recording a score of 81 on the Gartner Technology Demand Index for July (an index value of 100 would mean businesses spent exactly what they had budgeted for the month). The Technology Demand Index had remained above 90 during the months of May through July. However continued sluggish IT spending within small and large sized businesses has caused the aggregate current index to retreat to 81. While medium-sized businesses continue to show strength, an IT spending recovery in 2004 will require renewed growth from large and small businesses.

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