Europe tech spending increase to be half as big as US

Things aren't looking too rosy for European technology manufacturers, according to a new report from research firm Forrester.

The analyst suggests the global economic meltdown has affected Europe more than the US, and that the territory will only see a four per cent increase in purchases of technology goods, in comparison to an eight per cent increase in the US.

"The European economic recession has turned out to be deeper than the US recession," reads the report, "with Europe's downturn starting later and probably lasting into 2010. All categories of IT purchases will be down, with computer equipment and communications equipment being especially weak."

Vendors of such equipment are being encouraged to look away from western Europe during 2010, and concentrate on markets more likely to perform, such as the US and Asia.

For those that weather the storm, this could mean an opportunity to expand into new territories while observing trends Europe is likely to catch up with once the economy levels out, though it's only a mildly positive spin on the hard times ahead.