Tech companies predict further growth

New figures from trade body Intellect show that two thirds of companies expect to expand in the next six months

Some 61 per cent of UK technology companies have increased their business investment in the past six months, with two thirds expecting their companies to expand in the next half of the year, according to new figures.

The survey, carried out by industry body Intellect between 2 and 23 July, found that while the majority of respondents expect their businesses to grow, optimism about the economy improving is still low.

Although nearly a quarter believed the economy would improve, 44 per cent said they expect things to stay the same, while 27 per cent predicted the situation would worsen.

Forty-three per cent of respondents said they are very likely to recruit additional staff in the next six months, with another 40 per cent citing it as a possibility. The results come as VARs Trustmarque and Kelway announced recruitment pushes.

Despite the optimistic outlook provided by the survey, analysts surmised that uncertainty is still rife in the sector.

The survey concluded: "The findings from this survey underline the fact that there is a great deal of uncertainty about the state of the UK economy. However, there is some cause for optimism in terms of some of the data about the technology sector.

"In spite of the difficult economic headwinds, technology companies for the most part are expecting to expand their business and to take on new staff."

More than two thirds of respondents said they think that the government does not understand the technology sector well, with 43 per cent answering that they think the coalition's policies have had a negative impact on the sector as a whole.