UK tech industry experiences best growth in almost a decade
2nd Feb 2014 | 10:00
From strength to strength
The UK technology industry experienced high growth in the final quarter of 2013, marking some of the biggest performance increases in the sector in nearly a decade, according to research by KPMG.
The report shows that the industry index rose from a flat 50.0 for the previous sixteen months to an encouraging 61.0 in December. Company output growth has now reached the same levels as February 2004, suggesting the worst of the recession and its after-effects is behind us.
The research also found that UK technology companies are reporting their fastest improvement in profitability in six years.
The boost has been attributed to improved economic conditions in developed markets and a rise in domestic business sentiment. Yet the tech industry appears to be outperforming other sectors that are also seeing enhanced growth.
The joys of job creation
One of the biggest boosts in the sector reported by KMPG is job creation. Many companies took on new staff in the fourth quarter of 2013, contributing to a recent fall in UK unemployment figures.
The future looks just as bright. 44 per cent of UK technology firms said they plan to hire more staff in 2014, compared to just 7 per cent who expect to lose employees.
There is good news for current employees too. A new report by Barclays suggests that 71 per cent of UK technology companies plan to increase wages this year.
"These figures prove once more that the UK tech sector is going from strength to strength," said Tudor Aw, Head of Technology at KPMG. "The last quarter of 2013 saw the sector's best growth performance in almost a decade, with a sharp increase in business activity, a rise in new orders and an increase in profitability despite higher costs. More importantly the sector showed again solid rates of job creation, well above the rates in other sectors of the economy."
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