UK tech sector ‘firing on all cylinders’

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The UK tech sector enjoyed a quarter of robust growth in Q2, with business activity rising at its fastest pace since the onset of the financial crisis in 2007.

The latest KPMG/Markit Tech Monitor UK survey indicates that improving economic conditions have ushered in a sustained period of strong top line growth for tech companies, which in turn has boosted investment spending plans across the sector. Almost 61% of companies asked reported a solid upturn in year-ahead expectations for business activity and more than 43% said they were planning to hire more staff. Tudor Aw, head of technology at KPMG, said: "The UK tech sector is firing on all cylinders with sustained growth outstripping the wider economy. Importantly, this good news story looks like it will continue in the year ahead with many tech companies planning to loosen the purse strings to hire staff and raise capital expenditure." It is also clear from the study that capital expenditure plans within the tech sector are at their most upbeat since data was first collated in 2009. Around 43% anticipate an increase – compared to the previous high of 37.5%. Tim Moore, senior economist at Markit, added: "The latest survey provides a resoundingly bullish snapshot of UK tech sector performance in 2014 so far, with companies in the midst of their strongest overall growth phase for at least seven years. "Not only is the tech sector enjoying a longer and steeper growth upswing than the wider UK economy, but a broad spectrum of tech companies continue to report confidence in terms of job hiring and investment spending for the next 12 months."