The number of construction firms falling into insolvency dropped last month


According to the latest figures from Experian, 213 building and construction firms went insolvent in June - and insolvency rate of 0.12% - down from 278 in June 2012.

The overall business insolvency rate in the UK also fell to 0.07% in June from 0.08% in June 2012.

This is the second consecutive month that the rate has fallen year-on-year - in May the rate was down from 0.09 per cent in 2012 to 0.08 per cent.

Max Firth, Experian Business Information Services managing director said: “This is good news overall - we’ve already seen several months of low but level insolvency rates and the fact they have come down further indicates that firms are operating with more confidence than in recent years.

“However, as businesses start to think about growth and companies start to restock and rehire, the insolvency rate could well go up as cash flow becomes an issue.

“This makes it all the more important for SMEs to understand who they are supplying, how quickly they pay, and think about what credit options are open to them in advance.”