The UK technology industry has experienced a strong quarter from April to June 2014 as business activity rises at its fastest pace since 2007.
This is according to professional services provider KPMG – its latest KPMG/Markit Tech Monitor UK survey claiming that the improving economy has led to a sustained period of strong growth for tech companies.
In turn, this has boosted investment spending place across the sector, with 61 per cent reporting a solid upturn in year-ahead expectations for business activity.
A further 43 per cent of participants said that they intended to hire more staff during 2014.
“The UK tech sector is firing on all cylinders with sustained growth outstripping the wider economy,” claimed Tudor Aw, KPMG technology head.
“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,” he added.
According to the research, capital expenditure plans in the tech sector are at their most positive since data starting being collected in 29 per cent.
A total of 43 per cent of respondents expect an increase this year, up from the previous high of 37.5 per cent.
“The latest survey provides a resoundingly bullish snapshot of UK tech sector performance I n2014 so far, with companies in the midst of their strongest overall growth phase for at least seven years,” claimed Tim Moore, Markit senior economist.
“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,” he added.