Technology companies are expecting the industry to take a major blow in coming months as their customers reel from the economic crisis.

With low- and middle-income U.S. consumers struggling, the Reuters Global Technology, Media and Telecoms Summit was told that the relative strength of US technology companies will not last.

Virgin Mobile USA predicts that economic problems will stunt the buying power of its young customers into the middle of next year.

And with petrol prices breaking all records, grocery prices rising and the mortgage crisis hurting the US people were trying to make ends meet at the end of the month.

Meanwhile, Nokia CFO Rick Simonson, said it was difficult for investors to get the money they need because the financial institutions have retrenched.

John Chen, chief executive of software maker Sybase said he was not banking on an economic revival in the second half of the year and wasbudgeting for doom.

Fujitsu senior executive vice president Chiaki Ito feared that government money that would have gone on IT projects might prop up the housing mortgage market. X

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Reuters