British tech firms defied a wider UK slowdown at the end of 2014

Oliver Smith
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BRITAIN’S tech sector dodged a slowdown across the wider UK economy during the fourth quarter of 2014, driven by new business and a supportive funding landscape.

A cross-sector benchmark of UK businesses pegged activity at a score of 55.2 at the end of last year. But KPMG/Markit’s Tech Monitor UK survey said that UK tech companies rose sharply to a score of 59.8. Figures above 50 indicate growth.

“In the run up to the General Election, the message from the latest Tech Monitor UK survey is clear; the tech sector remains a star performer of the economic recovery, and the future looks resoundingly bright in terms of industry growth and job creation,” said KPMG head of technology Tudor Aw.

The survey, compiled from a group of around 150 tech firms within Markit’s regular purchasing managers’ index, also revealed a huge rise in the index measuring tech sector profitability, which rose from 52.5 in the third quarter to 55.8 in the fourth quarter 2014.

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