Global deal activity declined in the first five months of 2026, with the combined number of mergers and acquisitions, private equity transactions and venture capital deals falling by around 7% year-on-year, according to data from GlobalData.
The research and analytics group said the downturn reflected a more cautious stance among corporates and investors, with higher execution risk weighing on sentiment across most regions and asset classes. M&A activity fell 10% over the period, while private equity deal volumes dropped 13%, and venture capital proved relatively more resilient with a 3% decline.
According to GlobalData’s Financial Deals Database, weakness was broad-based across geographies, although North America remained comparatively stable, with deal volumes down just 1% year-on-year. Other regions saw steeper declines, including double-digit contractions across Asia-Pacific, Europe, and Latin America, reflecting uneven recovery conditions and more selective capital deployment.
Within individual markets, performance was mixed. The United States remained broadly steady, while China recorded an 11% increase in deal activity, supported by improving momentum. India and Israel also posted gains. In contrast, several major markets saw declines, including the UK and Canada, alongside sharper drops in countries such as Japan, Germany, South Korea, Brazil and the UAE.
GlobalData said the overall trend points to a more selective and risk-sensitive dealmaking environment, with investors prioritising quality assets and greater caution around execution timelines.
