Construction administrations fell by nearly 5 per cent over the last three months to 106 from 111 in Q2, latest figurse from accountancy firm Grant Thornton have revealed.
The construction business failures represents a fall of 13.2 per cent from the 120 administrations in Q1 and a 47.2 per cent drop from a peak of 156 failures in Q4 2008.
Grant Thornton head of construction Kathryn Hiddleston said: “Failures in construction companies are still at a high rate and remain a major concern for the industry, despite the recent decline.
“The tangible improvements in construction business failures may be partially driven by an upturn in the housing market as well as continued government infrastructure. However, rising unemployment and its effect on foreclosures indicates looming house price falls, which will undoubtedly impact the demand for construction businesses and services.
“Construction usually lags other sectors in recovering from a slump, so it is likely to fall much further before a real upturn is seen.
“Unfortunately this will not help the vast number of existing construction work which is now being considerably prolonged and even shelved.”