Leap in insolvencies since same time last year is the highest of all UK sectors
The number of construction companies falling into insolvency has risen 35% on this time last year, according to a new report.
The study, carried out by PricewaterhouseCoopers (PWC), found that 449 construction companies became insolvent in the second quarter of this year. The 35% jump was the highest of any UK sector.
Barry Gilbertson, a partner in the property team at PWC, said: “It is clear the consumer slowdown is starting to have a real effect on the construction industry, but the slowdown is not yet fully visible.”
He added: “A large number of the construction insolvencies are subcontractors to the housing industry whose pipelines of work have all but dried up.”
Overall, 3,277 businesses across all UK sectors went into insolvency during the quarter. Although the figure was down 3.1% on the first quarter it was 22% up on the same period last year.