The number of construction firm that collapsed in 2009 increased by one third in 2009 compared with 2008 according to the latest figures from PricewaterhouseCoopers.
The PwC data for the fourth quarter of 2009 reveal 696 construction firms entered into insolvency in the three month period.
The amount represented a 4.8 per cent increase on the 664 insolvencies in Q3 2009.
It left insolvencies for 2009 up 33 per cent on the prior year with 2,932 compared to 2,204.
Construction insolvencies represented 15 per cent of total insolvencies across all sectors in fourth quarter of 2009.
It was the hardest hit sector, with manufacturing and retail following. But the number of collapses fell from Q2 2009’s 737 and Q1 2009’s 835.
PwC construction leader Jonathan Hook said: “Insolvencies in the construction sector in the final quarter of 2009 have taken the total number for the last two years to over 5,000 companies.
“Whilst the economic stimulus packages have had some benefit, particularly in the public sector repairs and maintenance sector, it is clear that tough times for the sector are not over yet.”