The firm said the promised increase in activity for the sector had failed to materialise but pointed out that the value of deals had held up at $77bn (£42bn), compared to $80bn the previous year.
Stephen Barrett, international chairman of KPMG corporate finance, said: ‘Whilst it is encouraging to see no further depreciation in the value of completed activity, the UK’s sizeable drop in deal numbers is a telling sign that recovery is still a way off.’
De-stabilising events including inflationary oil prices, an increase in the cost of capital following a turn in the US interest rate cycle and large exchange rate moves have all contributed to disappointing deal numbers world-wide, added Barrett.
But KPMG said it expected a 54% upturn in the value of global activity to follow, boosted by a number of blockbuster deals announced earlier in the year that have yet to close.
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