LONDON The information, communications and technology (ICT) industries in the U.K. had a slight wane in confidence in business outlook over the last six months, according to the second KPMG/Intellect survey, due to less growth in public sector spending and export sales, than previously expected.
However the majority of respondents expected growth to continue for the next six months. The percentage of respondent’s who feel more confident about the general ICT business outlook than they did six months ago, has dipped from 63 to 50 percent.
The bi-annual survey, ICT Watch: A View to The Future is conducted by KPMG among members of Intellect, the U.K. trade association for the IT, telecoms and electronics industries.
While the majority of respondents (61 percent) were positive about the prospects for U.K. private sector spend fuelling growth, the percentage of respondents who feel confident in the ability of public sector spending to do the same has reduced from 61 to 46 percent. Among smaller companies, with a turnover of less than £10million, only 29 percent see public sector spending increasing growth.
The survey collates respondent’s views on five key business indicators; sales volumes, sales value, export sales, profitability and total staff numbers. Notably, there was a shortfall in export sales compared to predictions, only 36 percent of respondents experienced an increase, compared with 55 percent who had expected to.
The survey also indicates that more investment in science and technology education continues to be regarded as the key external initiative which would benefit growth prospects in the software, IT services and electronics industries.
Looking ahead 71 percent of respondents agree that further convergence of telecoms, broadband and broadcast media will benefit their businesses and 65 percent see the increasing uptake of open technologies and standards as also having a beneficial impact.