An analyst firm says the technology industry will recover this year from a "dismal" 2009.

Forrester Research says it expects global spending on technology products and services to grow 8.1 per cent in 2010 to more than $1.6 trillion (£983 billion).

US spending is expected to rise 6.6 per cent to $568 billion (£349 billion).

The increases follow sharp declines in 2009. Forrester analyst Andrew Bartels says the downturn of the past two years is officially over.

Spending on computer hardware and software is expected to drive much of the growth as companies upgrade outdated systems and programs.