Insolvencies in the construction sector fell by 4 per cent in the first quarter of 2010, according to new figures from PricewaterhouseCoopers.
A total of 674 companies in the construction sector entered insolvency between January and March 2010, compared to 705 in the fourth quarter of 2009 according to the figures from PwC.
The Q1 2010 total represents a 17 per cent drop on the same quarter in 2009, when 788 construction companies went bust.
Yet construction remained the most afflicted sector out of all UK industries with 15.8 per cent of the overall number of companies that entered insolvency during the quarter coming from the construction sector.
The figures equate to one in six of all firms that go bust are from the construction industry.
In the 12 month period to the end of March 2010, 2,780 construction companies went bust, up 10.2 per cent on the year to the end of March 2009 when 2,523 construction companies became insolvent.
PwC construction leader Jonathan Hook said: “I’d like to believe that construction insolvencies have peaked and we are through the worst.
“However, I don’t believe it’s safe to say so until we see the impact of the end of some of the financial stimulus measures and also understand the extent to which the next government is forced to reduce the capital programme.
“Hopefully the industry will lobby hard and win the arguments that construction spend is a force for good because of its direct and indirect impacts on jobs and the wider economy.”