But he talked about how better statistical measures are needed to give analysts a clearer picture of how new technologies are affecting the U.S. economy. It is technology companies, said Tom McManus, equity portfolio strategist at Banc of America Securities, that are mostly to blame for the economic malaise of the United States. The current economic data shows that the economy is decelerating but not in freefall, he said. The traditional manufacturing base . Michigan, automotive . . . and technology.
Technology is in a recession because it has come off a period of such extraordinary growth. . . .
Late Monday, Camarillo-based networking chip designer Vitesse Semiconductor warned that its second quarter earnings would be below expectations, citing weakness in demand and cancellations in orders. Both companies cited a big slowdown in demand. However, some of Silicon Valley's downtrodden tech stocks rallied on Tuesday. Mercury News Washington Bureau reporter Tony Pugh and wire services contributed to this report.