US IT spending to reach $291 bln in 2004

IDC said expenditure on information technology in the United States will reach an estimated $391 bln in 2004. Manufacturing and financial services will account for nearly one third of total expenditure. IDC said growth in IT expenditure will continue to be mixed by industry. IDC forecasts IT spending by the manufacturing sector will reach roughly $80 bln this year, a 4.2% increase over the $76.5 bln reported in 2003. In financial services, IDC expects budgets to climb to nearly $83 bln, a 4.1% rise compared with $79.7 bln last year. The momentum of government IT spending will continue with communications networks for egovernment and homeland security being a major investment area. IDC predicted that the government market will generate $38 bln in 2004, nearly an 8% increase over last year's total of $35 bln.