Number of insolvencies falls slightly on previous year but sector is still one of the worst hit
The construction industry suffered 278 insolvencies in June, according to the latest insolvency index from Experian.
The number of insolvencies fell marginally compared to June 2011, but construction was still one of the worst affected sectors by company insolvencies.
The proportion of construction businesses falling insolvent in June 2012 was 0.17% - down from 0.18% the previous year – but this figure was still well above the economy-wide average of 0.08%.
Experian said it saw an increase in the number of larger businesses falling insolvent across the whole UK economy in June, which could cause problems for SMEs.
Max Firth, managing director of Experian business information services, said: “Although the overall figures for June show a fairly stable environment at the moment led by smaller firms, the higher insolvency rate at the top end of the business world will have an impact on the supply chain.
“Many smaller suppliers, unless they have a good credit management process in place, will find themselves short of a major customer and left with unpaid bills.
“They will need to move quickly to fill the gap in their customer base.”