The UK Tech Sector Stalled at the End of Last Year

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The UK Tech Sector Stalled at the End of Last Year pixabay

When you look at the relevant data, you will soon find that the UK tech sector was in a state of limbo at the end of last year. New figures have shown that business activity was somewhat flat-lining and that hiring was also in decline by the end of 2019. This marked one of the worst quarters in over 7 and a half years. Those who work in the tech sector will know how debilitating this can be to the industry, considering so many advancements have been made to try and bolster the industry.

The Industries that have been Affected

Studies have shown that some industries have not really been affected. A lot of them are online-only businesses, as they do not really depend on the technology infrastructure of a single country. If you want an example, then the casino online industry is one of them. The KPMG have noted that a lot of this comes down to political uncertainty, in both the international and domestic market. When you combine this with the Brexit conundrum, you will soon see that it is not surprising that so many tech businesses have somewhat slowed down. There is also the ongoing trade war with the US and China as well. This is a tug-of-war situation with the company Huawei.

Concrete Figures

When you look at the concrete figures, you will soon see that the UK Tech Monitor Index showed 50.1 for the final quarter in 2019 and that it is down from 52.0 in Q3. The number 50.0 is essentially a flat line and anything below this means that the industry is in a negative state. This is the lowest reading since the second quarter of 2012.

New Business Activity

Aside from new business activity and even the flatline, the report shines a lot of light on the problems that a lot of organisations are facing when they choose to hire new staff. Some don’t want to hire new people at all because they think that it is too risky when you look at the climate. Others find it very difficult to find skilled workers at all. At the end of the day though, it really isn’t all doom and gloom. The report has also shown that a lot of businesses are having a very positive outlook on the year ahead. People haven’t been this optimistic since the third quarter of 2018. Of course, only time will tell what the future holds but right now it looks like positive changes are being made and that more needs to be done to try and give UK businesses the support they need. This will come from certainty regarding the Brexit situation, and it will also come down to the fact that businesses are able to expand and progress without having to worry about the future. Until this happens though, there looks to be a lot of businesses who are struggling to stay afloat as the result of the economy.