The UK tech sector recorded a strong bounce-back in the third quarter of the year, returning to growth following a tough Q2 in lockdown.
This is according to KPMG’s quarterly survey of UK technology companies, which found that the headline index reached 53.3 in Q3 (with a score of 50.0 representing the neutral line between growth and decline).
The growth has been “sharp”, according to the consultancy firm, especially considering that Q2 saw a headline index of just 31.8. This is also the sharpest growth the country has seen since Q1 2019, it was added.
Predictably, the growth was fuelled primarily by Covid-19 measures slowly being lifted, so it is possible the imminent return in lockdowns across Europe will bring about a second decline.
KPMG also added that the momentum accelerated in each month during the third quarter, signalling that the rebound “took hold” in the absence of direct stimulus measures for the sector.
Hiring is also a signal that the market is headed towards stabilization, with the report stating that staff hiring trends across the UK tech sector have been “far more resilient” than across the wider economy.
Despite promising signs, however, the UK technology industry is still struggling by certain metrics. For example, intake of new work rose from a record low of 29.7 in Q2 to 48.2 in Q3, but is still showing relatively weak overall demand.