A recent report from IHS Markit, one of the world leaders in analytics and critical information for major economic markets, suggests that the Technology sector in the UK has seen a slow-down since the final quarter of 2018. Despite this, much of the technology industry remains positive about the potential that 2019 holds for additional growth.
According to IHS Markit research, the tech sector saw a complicated end to 2018, marked by the reduction in business activity to its lowest point in 3 years. New opportunities for work were limited, and Brexit-related uncertainty has meant that global trade has experienced some friction.
Slowest Rate of Expansion for Years
The KPMG UK Tech Monitor Index - designed to measure the performance of sector-wide business activity, remained at 52.4 for the technology space in Q4. This means that Tech is hovering above the critical 50.0 no-change value. Despite the slowdown, technology is still experiencing the upward-growth trend that began in 2012.
Although the situation might not be dire yet, the latest reading was done from a more reassuring 54.0 in Q3 of 2018, pointing towards the slowest rate of technology business expansion since 2015 (Q4). Around the country, technology brands also revealed the sharpest fall in work backlogs that the industry has seen for 7 years - suggesting that there aren't enough new projects available to replace completed work.
As the available work in the industry falls, staff hiring has also seen a significant reduction. Many businesses have responded to the subdued business environment by deciding not to add any further staff to their team at the end of 2018. Fortunately, employment numbers for the UK continued to rise overall in Q4, despite the slowdown.
