Tech sector “star performer” in UK economy
Jobs in technology have accelerated over the last five years while rest of UK economy has slowed down, reports KPMG’s latest Tech Monitor UK survey
The UK’s technology sector enjoyed “robust growth” in the final quarter of 2014 with the widest performance gap between the tech industry and the rest of the UK economy for almost six years; according to KPMG’s Tech Monitor UK survey published today.
The report, which analysed economic activity between October to December 2014, found there was an “acceleration” in the number of tech sector jobs rising continually over the last five years – with technology businesses said to have avoided the “slowing down” seen across the rest of the private sector.
Tech businesses attributed these recent surges in growth to a combination of launching new products such as cloud-based initiatives, as well as greater marketing efforts and strong demand for tech-enabled services.
The survey also reflected a positive outlook for UK tech in 2015 with 53% of the survey panel expecting a rise in business activity over the next 12 months and tech sector hiring intentions upbeat for 2015.
Commenting on the Tech Monitor UK results, KPMG’s technology sector head, Tudor Aw, said: “This quarter’s Tech Monitor report shows two fantastic pieces of news. Firstly, the concerns highlighted in our previous survey about the UK tech sector entering into storm clouds have been misplaced. Secondly, the UK tech start-up scene is not only growing, but survival rates are impressively high.
“This edition also includes, for the first time, a special report on the UK start-up scene. The results confirmed my personal view that the UK tech start-up scene is vibrant and far outstripping other sectors. For those naysayers, it also shows that they have a higher survival rate than the UK average for all start-ups. I sense momentum is building and that it is only a matter of time when we begin to rival the west coast.”