Confidence among companies in the TMT sector is increasing, according to a survey by business advisors Ernst & Young.

In a recent survey it found that telecommunications, media and technology (TMT) sector companies were focused on growing revenue, increasing profitability and raising the capital needed to fund this growth.

The majority of the 131 TMT execs interviewed for the Ernst & Young HiTech Monitor survey said they anticipated that the market would grow by up to 5 per cent over the next six to 12 months.

Strangely, six out of ten respondents predicted that their own growth would be at least twice that of the market's increase.

Six months ago though, a similar survey by Ernst & Young painted a different picture with the TMT sector having to deal with cost reductions, disposal and exit strategies and managing weak cash flows.

This swift turn-around in confidence may be welcome by some but Ernst & Young has warned companies in the TMT sector not to be over-confident

Despite dealing with tough trading conditions and tighter margins, these companies have told Ernst & Young that they are seeing a more positive business environment compared with six months ago. Which is nice. ®