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Construction insolvencies reach 5,126

Construction and manufacturing have been the hardest hit sectors since 2009 despite a slight improvement in the last quarter, according to a new insolvency report by PwC.

The auditing firm said there were 5,126 collapsed construction companies between Q3 2009 and Q2 2011.   In manufacturing there were 4,058.
By comparison, the retail sector which has also been badly hit recently, has had 3,513.

Latest figures for Q2 looked a little more positive for the sectors, with construction seeing 17.7 per cent fewer insolvencies against Q1 2011 and manufacturing 26.5 per cent fewer than Q1.

Jonathan Hook, construction leader at PwC, said:  “These figures highlight that construction in the UK is a long way from recovery. Whilst the number of insolvencies fell on the previous quarter of 2011, they are still 5 per cent up on the equivalent quarter last year.

“Companies working on major infrastructure projects or on large frameworks are still busy, but the picture outside London and the south east is going to continue to be challenging. Work is being bid at very tight margins and I think things could well get worse before they improve.”

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