San Francisco/Las Vegas  - With bad news shooting from every sector of the economy, the fact that the main technology show in the US is only slightly smaller than last year is seen by organizers as a noteworthy accomplishment in itself.

But more worrying for the organizers, exhibitors and attendees at the Consumer Electronics Show in Las Vegas is that the razzle-dazzle associated with the cutting-edge of consumer technology seems to have faded as badly as the paint on a rusting SUV.

"People are trying to put a brave face on things, but we all know the truth," said cellphone exhibitor Simon Blitz. "This is the worst market any of us have ever faced."

The report that greeted those participants interested in the sorry state of the market didn't give cause for optimism. A Forrester Research study this week found that with less money in their pockets to spend, US consumers are no longer falling for the marketing hype that in previous years had them drooling at the sight of the latest, greatest gadgetry.

The survey found that 51 per cent of US customers said they would curb their tech spending compared to last year. Their tight- fistedness was even more pronounced in some surprising categories: 63 per cent said they would probably refrain from buying a smartphone such as the iPhone 3G, and 62 per cent said they would curb their desire for new video-game consoles.

The representative sampling of more than 5,000 US consumers found they were less prone to buy a high-definition television this year. Even those that do go for a sexy, flat-screen TV will probably choose smaller and cheaper models. Demand for the monster screens that dominate the show floors at CES is likely to plummet.

In similar decline is demand for high-end laptops. In these penny- pinching days, who really wants an expensive, bells-and-whistles device, when the vast majority of computer users just want to surf the web to find their favourite YouTube videos, and the latest update to their Facebook wall?

The many net-books now offered by all the major manufacturers for well under 500 dollars are the choice of many who are buying computers on a budget.

"Clearly, there's a lot of demand for lightweight, low-power, superbly connected devices," noted PC Magazine.

No one seems immune to the implications of the downturn. Even chip giant Intel reported a 23-per-cent drop in sales from the fourth quarter last year.

Despite the downturn, some 130,000 visitors are still expected to flock to the Las Vegas show, down about 10,000 from last year and 25,000 from the record attendance in 2007. It might have been much worse if many of the bookings had not been made before the depth of the economic crisis became apparent in early autumn.

Nevertheless, there are many notable absences.

Most conspicuous by his absence was Microsoft founder Bill Gates, whose traditional role of show-opener is being assumed by Steve Ballmer for the first time on Wednesday night.

Technology bellwether Philips is gone, while stalwarts such as Cisco, Sanyo, Panasonic and accessory maker Belkin have eliminated their fancy floor displays and will instead hold more focused meetings in hotel suites and ballrooms. Attendees report receiving far fewer party invitations than in years past.

There was a noticeable lack of party atmosphere even at MacWorld Tuesday, the annual Apple extravaganza, where hyper-enthusiasm is usually the default mood. That was partly due to the fact that Apple's guru chief executive, Steve Jobs, declined to give his usual keynote address, even as he dismissed persistent speculation about his health.

That did nothing to stop the speculation among the thousands of devotees - or the sense of disappointment at the lack of a wow moment among the product announcements. Some accounts called the event a "snoozefest." One MacWorld blogger put it best: "Final Verdict: Meh."