European Tech Spending Shows More Promise Than U.S.European Tech Spending Shows More Promise Than U.S.

Technology buyers in the United States are scaling back spending plans, while Europeans are ramping up.

European IT execs show a more optimistic attitude toward tech spending than their counterparts in the United States, according to the Technology Confidence Barometer, compiled by research firm RoperNOP from surveys of 1,100 business and technology executives. Overall, European companies predict a 6.8% increase in IT spending next year versus a 5.9% increase expected in the United States. Six months ago, U.S. tech buyers expected a 7.7% increase in 2003 spending, while Europeans foresaw only a 6% jump.

The biggest difference between the United States and overseas lies in where the dollars are being spent, says RoperNOP, which, like information, is owned by United Business Media. While spending on information security products is expected to see the greatest increase on both sides of the Atlantic--8.6% stateside and 8.4% overseas--Europeans will increase spending by larger amounts in areas such as VPNs.

A report from Goldman Sachs, based on surveys with 100 of the nation's largest 1,000 companies, also shows a decline in spending plans from earlier surveys. However, those companies say tech spending will decline 1% in 2003, down from an estimated 2% to 3% increase reported in October.