Global deal activity softened in the first half (H1) of 2026 compared to the same period in the previous year, as businesses continued to navigate an environment marked by valuation discipline, selective risk-taking, and heightened due diligence. The total number of deals (comprising mergers & acquisitions (M&A), private equity, and venture capital (VC)) announced globally decreased by around 6% year-on-year (YoY) during H1 2026, according to GlobalData, a leading intelligence and productivity platform.

An analysis of GlobalData’s Financial Deals Database reveals that the decline was driven primarily by weaker M&A activity. The total number of M&A deals announced globally fell by around 9% YoY in H1 2026, indicating sustained caution as macroeconomic uncertainty and financing considerations continue to influence boardroom decision-making.

Private equity activity also remained under pressure, with deal volume down 7% YoY, while venture financing remained relatively stable, registering a marginal 0.5% YoY decline.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The decline in deal activity signals that dealmakers are prioritizing strategic fit over speed, while investors remain disciplined on valuations and focused on priority areas. Meanwhile, regional and country-level performance highlighted a clear divergence in momentum, underscoring the uneven nature of dealmaking conditions globally.”

North America, which continues to lead by volume, bucked the global trend, recording an increase of around 1% YoY. The US, in particular, posted a 2% YoY growth, reinforcing the region’s relative strength and signaling that deal flow is holding up better in certain markets.

In contrast, Asia-Pacific recorded a 12% YoY decline, even as China registered a 7% YoY increase and India grew by 1% YoY, highlighting some resilience in the region. Japan, Australia, South Korea and Singapore witnessed respective declines in deal volume of 40%, 17%, 22% and 16% YoY in H1 2026.

Europe also witnessed a contraction, with deal volume down 9% YoY, reflecting persistent caution across key economies. The UK saw deal volume fall by 6% YoY, while Germany declined by 12% YoY and France dropped by 11% YoY. Other regions also posted declines. Deal volume in the Middle East and Africa fell by 5% YoY, while South and Central America recorded 21% YoY drop.

Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.