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UK firms are bracing themselves for a slowdown

UK firms are bracing themselves for a slowdown over the next 12 months as business confidence declines, according to market watcher KPMG.

The number of businesses, including IT players, expecting revenue to increase in the next 12 months declined by 12 per cent to 53 per cent, compared with the same period last year, KPMG reported.

Philip Davidson, head of restructuring at KPMG, said: “An increase in the cost of raw materials, the issue of outsourcing and industry conditions are adding to the strain. Price increases can no longer be passed into the channel in the IT market, so vendors will have to absorb more of the cost themselves.”