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UK tech sector ground to a halt at the end of 2019

(Image credit: Image source: Shutterstock/violetkaipa)

The performance of the technology sector in the United Kingdom was in “limbo” at the end of last year, new figures have revealed.

According to a report by KPMG, new business activity was “flat-lining” and hiring was in a decline by the conclusion of 2019, which marked the worst quarter in the last seven and a half years, which had previously seen continued expansion.

KPMG noted that political uncertainty, both domestic and international, were major factors that contributed to this state, along with the entire Brexit conundrum (opens in new tab), paired with the ongoing trade war between the US and China, resulting in the tug of war with Huawei (opens in new tab).

In concrete figures, the UK Tech Monitor Index has shown 50.1 for the final quarter of 2019, down from 52.0 in Q3. The number 50.0 represents a flat line, basically, with everything below that meaning the industry is in negative. This is also the lowest reading since Q2 2012.

Aside from new business activity and its flat line, the report also shines additional light on the problems organisations are facing with hiring new staff. Some outright don’t want to hire new people, thinking it’s too risky in the current climate. Others are struggling to find adequately skilled workers.

But it’s not all doom and gloom – the report shows that businesses are having a positive outlook on the year ahead. As a matter of fact, they haven’t been this optimistic since Q3 2018.

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.