Recent insolvency data from PwC has confirmed that manufacturing and construction have been the hardest hit sectors since 2009 although did fare slightly better in Q2 2011 than Q1.
In total, there were 5,126 collapsed construction companies between Q3 2009 and Q2 2011 and in manufacturing, for the same period, there were 4,058. By comparison, the retail sector which has also been badly hit recently has had 3,513 over the same period.
Latest figures for Q2 looked a little more positive for the sectors however, with construction seeing 17.7% fewer insolvencies against Q1 2011 and manufacturing 26.5% fewer than Q1.
Philip Hines, PwC partner and manufacturing spokesperson, said: "Fewer insolvencies in this latest quarter is definitely encouraging but there still remains uncertainty over current manufacturing order levels and the continued strength of the recent manufacturing recovery. Unfortunately this could imply further insolvencies in the second half of this year."
Jonathan Hook, construction leader, PwC, commented: "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% 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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