Experian data shows the construction sector had the second largest number of insolvencies in UK economy last month
Insolvencies in the construction industry in November were up 15% on the same period last year, according to Experian.
There were 261 insolvencies in the construction sector last month, the second highest of any of the 35 sectors monitored by the financial analyst. Only the business services sector saw more insolvencies with 444.
Of the five biggest sectors in the UK economy only property saw an improvement in its insolvency rate.
Max Firth, managing director for Experian’s Business Information Services division in the UK & Ireland, said: “The latest insolvency index highlights that some businesses continue to need to assess the risk strategies they have in place very carefully. They need first to understand the risks they are exposed to and then protect themselves from debt that could be detrimental to their business on a regular ongoing basis.”
Construction’s financial strength score dropped from 78 in November 2010 to 76 this November.