Technology companies have outperformed all UK industry sectors in terms of activity and new growth during 2014, according to research.
The UK tech sector scored 59.2 in consultant KPMG’s Tech Monitor, based on an index where scores above 50 indicate growth. IT outperformed the combined total of 58.4 for other private sector industries.
The UK tech sector is on course to register its fastest year of expansion since 2007. Benign economic conditions, improved access to funding and greater business spending were seen as key factors.
In a word of caution, however, KPMG warned that momentum slowed during the third quarter. The index shows business activity scored 55.6, compared to the second quarter’s score of 59.7.
"The overall picture for 2014 is upbeat for the tech sector. Indeed, the survey signals the highest confidence among UK tech companies compared to the UK average since our records began in 2003," said Tudor Aw, technology sector head at KPMG.
"However, the slowdown in growth rates needs to be taken seriously. The industry and policymakers cannot afford to be complacent. They must ensure the sector gets the right level of support to continue to thrive."
KPMG’s UK tech sector data is derived from a representative sub-category of approximately 150 tech companies within information specialist Markit’s regular surveys of UK manufacturers and service providers.
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