Umbrella company contractors working in the tech sector will be pleased to learn that the industry has remained resilient.
The KPMG UK Tech Monitor Index, which measures the strength of business activity across the sector, rebounded to 54.4 in Q1, from 52.3 at the end of 2018 – the weakest pace of growth recorded in three years.
However, the sector, which includes technology software and services providers, and technology equipment manufacturers – also outperformed the overall UK economy in Q1 2019, which grew at the weakest pace (50.6) for over six years.
Tech firms attributed faster sales growth to resilient demand from the US and from diversification into new overseas markets. The new business index registered at 55.1 in Q1, up from 51.9 in the final quarter of last year.
Although the rate of employment growth remained among the weakest since 2013 in Q1, 43% of tech firms said they expected to boost their workforces in the next 12 months, while only 11% forecast a reduction.