Insolvencies reach 5,126 however fewer occurring in 2011
Insolvencies in the construction sector have slowed down in the last three months according to a new insolvency report by PwC.
Latest figures from the accounting firm revealed that 5,126 construction companies collapsed between Q3 2009 and Q2 2011.
Other hard-hit sectors include manufacturing which saw 4,058 insolvencies – and retail where 3,513 companies went bust.
However in more positive news for construction, there were 17.7% fewer insolvencies during the second quarter of 2011 compared to the first quarter.
Jonathan Hook, construction leader at PwC, said: “These figures highlight that construction in the UK is a long way from recovery.
“Whilst the number of insolvencies fell on the previous quarter of 2011, they are still 5% up on the equivalent quarter last year.
“Companies working on major infrastructure projects or on large frameworks are still busy, but the picture outside London and the South East is going to continue to be challenging.
“Work is being bid at very tight margins and I think things could well get worse before they improve.”