Confidence in UK IT companies at record high

IT companies in the UK are heading for a boom, according to their accountants.

The latest Business Confidence Monitor, run by the Institute of Chartered Accountants in England and Wales (ICAEW) and the Alliance & Leicester, shows confidence in the IT sector at a record high of +48.2, well ahead of business and property services at +30.2.

The monitor is a survey of 1,011 accountants who rate their confidence on a scale of plus and minus up to 100 and covers a number of key business factors including turnover, profits, orders, prices and capital investments.

Eric Anstee, CEO of the ICAEW, said: "The high levels of confidence suggest the Chancellor may be on track with his optimistic forecast for economic growth after all, with our members predicting strong and increasing domestic demand and growth in exports, despite the strength of sterling."

So, if you're selling IT systems into manufacturing and engineering or energy and extraction, as well as service, things should look up. Only the retail sector is looking a bit down, with a confidence level of +9 due to competition and worries about consumer debt.

There is one fly in the ointment. In the private sector, no one is planning much capital spending. That's set to grow only 2.7 per cent.

And, as Anstee points out: "This is likely to be a concern for the business-to-business firms currently so optimistic about the coming year – especially if rate rises deter further spending."