The construction sector in the North West continues to struggle, with 452 insolvencies in the sector in the last 12 months.
The number of insolvencies in the sector rose from 74 in the last quarter of 2012 to 85 in the first quarter of 2013.
There were 115 construction company insolvencies in the first quarter of 2012.
The figures are revealed in PwC’s latest insolvency survey.
PwC Manchester partner Iwan Griffiths said: “The reduction in manufacturing insolvencies in the North West is encouraging but with rising raw material costs and no imminent signs of a material economic recovery, the outlook remains tough for those companies already experiencing financial stress.”
Ian Marsden, property expert and partner, PwC Manchester said: “Any reduction in the number of insolvencies in the construction sector is welcome and so to see a drop in levels from Q1 2012 to Q1 2013 in the North West is good news.
“The sector in the UK is still experiencing declining output year on year however, so we are not necessarily over the worst yet in terms of insolvencies.
“There is an ongoing cash squeeze throughout the supply chain as has been evidenced in recent reported results.
“The measures in the recent budget to support infrastructure, and in particular levels of house-building are welcome but will take a little while to feed through into output.”
This article was taken from the Place North West website and can be accessed by clicking the following link.