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, paired with the ongoing trade war between the US and China, resulting in the tug of war with Huawei.
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.