UK tech sector posts highest growth in almost 10 years driven by continued job creation

UK technological firms are posting the fastest level of growth in almost 10 years with the market maintaining continuous jobs growth for a staggering four straight years.

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The latest KPMG/Markit Tech Monitor UK report showed that the measure on which it calculates growth was above the 50.0 threshold for the 16th month in a row and grew at the fastest level since February 2004, and outstripping other sectors of the economy in the process.

“UK tech companies are also more confident about the business outlook than firms in other industry sectors, with growth expectations at tech companies well above UK private sector average, underlining the impact the sector has on the country’s economic performance and the important role tech companies play in the burgeoning recovery,” stated Tudor Aw, head of technology at KPMG.

Job growth is another area where the UK tech sector is showing impressive growth with the Markit Global Business Outlook Survey carried out in October 2013 showing that 43.9 per cent of firms intend to increase staffing levels in the next 12 months and just seven per cent are forecasting a drop.

“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 2013. Looking ahead, the sector seems well positioned to benefit from any increase in corporate spending patterns over the course of 2014. With survey respondents buoyed by strengthening business conditions so far this winter, a substantial proportion of tech companies now report plans to raise their own capex and staffing levels later this year,” added Tim Moore, senior economist at Markit.

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The Tech Monitor UK report also showed similar sentiments in terms of jobs being created with employment remaining at 53.9 – the lowest level since August but still above the neutral 50.0 value and thus meaning jobs growth has been present for four consecutive years.