The number of companies filing for insolvency has fallen by more than 26% in Q2, according to research by business advisors PriceWaterhouseCoopers.
Data from PwC confirms that manufacturing and construction have been the hardest hit sectors since 2009, although both did slightly better in the second qurter of 2011 than the first three months.
In total, 4,058 manufacturing companies collapsed between Q3 2009 and Q2 2011. The retail sector has also been badly hit more recently, with announcements from Thorntons clouding the skies of the UK recovery. In the same period, the retail sector has seen 3,513 companies collapse.
The reason for hope came from the comparison between Q1 and Q2 of this year – manufacturing insolvency was down by 26.5%. PwC’s manufacturing spokesperson Philip Hines said: “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.”
While many see manufacturing as one of the most promising areas for assisting the recovery effort, particularly those in government such as George Osborne and Vince Cable, it remains to be seen whether the rebound after the crisis in Japan and the Royal wedding can be sustained.