UK technology market sees fastest growth for decade

The final quarter of 2013 saw the fastest increase in UK technology sector for almost a decade and firms in the sector are matching the US

The final quarter of 2013 saw the fastest increase in UK-technology-sector business for almost a decade, and firms in the sector are matching their counterparts in the US, according to KPMG.

According to the firms Tech Monitor report, sales made by UK tech firms saw the biggest increase since 2004 and the biggest increase in profitability for six years.

Employment in the sector is also rising with 44% of UK technology firms planning to hire more staff over the next year and just 7% expecting to reduce staff numbers.

The sector's confidence is reflected in its plans to invest for growth. The research found that 27% plan to increase spending over the next 12 months with only 13% planning to reduce spending.

Despite the US being seen as the main IT market, the trends in UK technology business activity closely match the performance of the Nasdaq.

Tudor Aw, head of technology at KPMG, said the figures prove once more that the UK technology sector is going from strength to strength.

“More importantly, the sector showed again solid rates of job creation, well above the rates in other sectors of the economy. 

He said the technology sector is above average in terms of confidence and play an important role in the UK’s economic recovery. “UK technology companies are also more confident about the business outlook than firms in other industry sectors, with growth expectations at technology companies well above UK private sector average, underlining the impact the sector has on the country’s economic performance and the important role technology companies play in the burgeoning recovery.”

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