In Q4 2013 the UK tech sector saw its best growth in nearly a decade, according to the latest KPMG/Markit Tech Monitor UK report.
The index measuring UK tech sector business activity measured at 61.0. This was well above the no-change threshold of 50.0 for the 16th consecutive month, highlighting the continued strong growth of the sector.
The report also found that almost 44% of UK tech firms plan to hire more staff over the year ahead, while only 7% expect a fall. In fact, the data shows UK tech companies have been on a sustained hiring spree since late 2009.
The report also found that 27% of UK tech firms intend to increase their capital expenditure in the next 12 months, with only 13% anticipating a reduction.
Q4 2013 also saw the fastest improvement in profitability for firms in the sector in six years.
For Head of Technology at KPMG, Tudor Aw, “These figures prove once more that the UK tech sector is going from strength to strength.”
Tim Moore, Senior Economist at Markit (suppliers of data used in the report), added: “Most encouragingly, our figures suggest that the tech sector has provided a positive contribution to recent falls in UK unemployment, as tech companies reported taking on extra staff at a solid clip during the final quarter of 2014.”
The basis for the KPMG/Markit Tech Monitor UK report is The UK Tech Sector Purchasing Manager’s Index (PMI).
This data is derived from a representative subcategory of approximately 150 tech companies within Markit’s regular PMI surveys of UK manufacturers and service providers.