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Weak Recovery Slows Spending

The U.S. economy is recovering and IT spending may soon revive, but the return to growth is fragile and fraught with pitfalls, said William Schaff, CEO and chief investment officer at Bay Isle Financial Corp. "Long-term trends for IT spending appear to be intact. That shows where our productivity gains continue to come from," said Schaff, an InformationWeek columnist. But employment is still contracting, and the heavy national debt will make its weight felt if the dollar continues to decline against the euro and the Japanese yen.

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