Weak U.S. tech spending spreading somewhat: Dell CFO

SAN FRANCISCO (Reuters) - Dell Inc (DELL.O) saw conservative spending in the latest quarter among U.S. customers "spreading somewhat," and the trend has extended to Western Europe, Chief Financial Officer Brian Gladden said on Thursday.

The recently hired executive said conservatism among big U.S. corporate customers during the second quarter ended August 1 was relatively consistent with the weakening pattern in the first quarter.

"It is conservatism that has been relatively consistent for the last six months or so, but it is somewhat spreading," Gladden told reporters on a conference call.

Most of the slowness in Dell's government business was among state and local customers as opposed to its U.S. federal government business which remains "relatively strong," he said. "Small business has slowed as well."

Prices paid to suppliers for components used in its products from the world's second largest computer maker were slightly favorable, but in line with trends typically seen at this time of year, Gladden said. Transportation costs from its global supply change were hurt by skyrocketing fuel prices.

Dell also began seeing more conservative spending in Western Europe late in its first quarter ended in May, Gladden said. Weakness is focused in Western Europe and stretches from Spain to Britain among both corporate and consumer customers.

(Reporting by Eric Auchard, editing by Richard Chang)