New business volumes increased at the slowest rate since mid-2013.
Growth in the UK tech sector is experiencing a slow down ahead of the general election because of uncertainty and delays in decision making.
The tech sector UK Business Activity Index dropped to its second-lowest since mid-2013 to 55.7 at the end of the first quarter of this year, when compared to 59.6 in Q4 2014.
According to the survey, 55% of UK tech firms expect an increase in business activity over the next 12 months, while 7% anticipate a drop.
More than two-fifths of the survey panel expect an increase in hiring over the year as the tech sector employment was found to be expanded by about one-quarter since 2010.
The near-term growth momentum said to have held back by renewed risk aversion within domestic and external markets.
The latest KPMG/Markit Tech Monitor UK survey revealed that 29% of the survey panel expect an increase in capex plans, while 14% anticipate a drop.
KPMG partner and head of technology sector Tudor Aw said: "Tech Sector employment shows the significance of the sector in the 21st century where technology is all pervasive.
"The UK tech sector has grown significantly, delivering three times the rate of job creation as the wider UK economy and now accounts for over 1 million jobs.
"It is an important message to political parties of all persuasion in the upcoming general election that the sector is worthy of support and focus, particularly when it comes to promoting the sector and investing in STEM based education that is so vital to meeting the demands of tomorrow’s tech businesses."