Thames Valley: Reading is the prime location for technology in the UK, says KPMG report

The Tech Monitor report from KPMG said that technology companies tended to cluster around the M4 corridor – from Hounslow through Slough, Bracknell and Wokingham – all of which boast more than twice the national proportion of technology companies. In Reading itself, the proportion of technology businesses is three times the national average.

The sector was expanding at its fastest rate since 2007, according to the report. Technology companies had outperformed all UK industry sectors in terms of both business activity and new business growth during 2014.

Benign economic conditions, improving access to funding and greater business spending were all highlighted by respondents as the key factors boosting activity during the third quarter of 2014.

The report cautioned that momentum slowed in the third quarter of the year.  The Index showed, for example, that business activity scored 55.6 in Q3, compared with last quarter’s score of 59.7.

Employment prospects in technology continued to improve with the employment index rising from 52.3 in the second quarter to 54.5 in the third. Organisations were also hiring more with 62% of firms saying they anticipated a rise in business activity over the year ahead, while only 8% forecasted a decline.

Tudor Aw, technology sector head at KPMG, said that despite slower growth during the last quarter, the overall picture was upbeat for the sector.

“Indeed, the survey signals the highest confidence among UK tech companies compared to the UK average since our records began in 2003," he said.