Leap in insolvencies since same time last year is the highest of all UK sectors

The number of construction companies falling into insolvency has risen 35% on this time last year, according to a new report.

The study, carried out by PricewaterhouseCoopers (PWC), found that 449 construction companies became insolvent in the second quarter of this year. The 35% jump was the highest of any UK sector.

Barry Gilbertson, a partner in the property team at PWC, said: 鈥淚t is clear the consumer slowdown is starting to have a real effect on the construction industry, but the slowdown is not yet fully visible.鈥�

He added: 鈥淎 large number of the construction insolvencies are subcontractors to the housing industry whose pipelines of work have all but dried up.鈥�

Overall, 3,277 businesses across all UK sectors went into insolvency during the quarter. Although the figure was down 3.1% on the first quarter it was 22% up on the same period last year.

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