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Tech purchases drive up business spending

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Driven largely by sales of computers and software, U.S. business purchases last year exceeded pre-recession levels, according to a report by The NPD Group Inc., a New York-based consumer research firm.

The Kansas City Business Journal reported that total sales to businesses rose 12 percent last year to $59 billion, compared with a 9 percent decrease in 2009.

“Business investments in infrastructure are an encouraging sign for the overall economy,” said Stephen Baker, NPD’s vice president of industry analysis, in a press release. “Spending on IT products, especially, has traditionally been a way for businesses to invest in future company growth in an efficient and scalable manner.”

Baker noted that increased spending on product segments such as network storage products reflects an improved outlook by owners of small and medium-sized companies.

The uptick in spending, Baker said, indicates that “small and medium businesses are putting the technology backbone in place that will enable them to deliver profitable growth as the economy improves.”

Sales of personal computers alone climbed 33 percent to $6 billion, according to NPD. Spending on hardware rose 18 percent to $38 billion, with small and medium-sized businesses contributing much of the growth via investments in new computers and other infrastructure products.