NPD Group reports that US consumer technology sales, which it defines as "IT, imaging, audio, video, and consumables" reached a record $129 billion in 2007.

This was a 6.5% increase over 2006.

The second half of the year was not spectacular though. Sales in that period only grew 5%

"Such a disappointing holiday season, compounded by a lackluster back-to-school season, as well as economic concerns, took a toll on consumer technology revenue growth in the second half of 2007,” said Stephen Baker, vice president at NPD.

“It’s concerning to see sales growth slowing, but not unexpected as industry trends point towards a consumer technology market offering its customers more evolutionary, rather than revolutionary, technological improvements in the coming year.”

Five categories accounted for 47% of the spending in 2007 - LCD TVs, notebook and desktop computers, digital cameras, and MP3 players. In 2006 these categories represented 42% of consumer technology sales.