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CAMBRIDGE, MA -- Global purchases of IT goods and services by businesses and governments will fall 10.6% this year, according to a just-released report. But buying should resume in the fourth quarter, says Forrester Research.

The research firm revised an earlier forecast, which called for a 3% drop worldwide this year. The firm downgraded its US IT outlook to a 5.1% drop, from 3.1% decline. Computer and communications equipment sales will drop 13.5% and 12.4%, respectively, this year, the company said.

In a press release, the firm said, “New data about large declines in business technology investment during the first quarter prompted Forrester to update its forecasts for technology spending.” The company also said now US IT spending should restart in the December quarter.

“While [the] first quarter saw a scary drop in purchases in the US tech market, ironically that is good news for the long run and we expect to see a stronger rebound sooner,” said Forrester analyst Andrew Bartels. “The big drops are not precursors to further declines; rather, we think they are evidence of a temporary pause in US tech purchases, which we expect to start recovering in Q4 as businesses realize that they overreacted in the first quarter.”

WASHINGTON – The National Association of Manufacturers expressed strong support for the decision by the US and European Union to initiate dispute settlement procedures in the World Trade Organization regarding China's export restraints.

In a press release, NAM vice president for International Economic Affairs Frank Vargo said, "NAM wants to see a robust, healthy, long-term trade relationship with China. That relationship must include adherence to the global trade rules that China committed to follow."

Vargo said China’s export restriction of nine key raw materials has "distorted trade and caused economic injury" to NAM members. China’s actions, NAM said, have "had the effect of subsidizing Chinese producers by allowing them to pay a lower price for those materials than US companies. In our view, this is a clear violation of commitments China made when joining the WTO."

The US and China have been engaged in discussions on the matter for two years.

NAM supported China’s inclusion in the WTO because it would bind the nation to international trade rules, including provisions for resolving trade disputes. "The decision by the Obama Administration to file this case is in fact a further sign of maturity in the US-China trade relationship," NAM said.