Insolvencies down by four, says PwC
There was a small decrease in the number of corporate insolvencies in the West Midlands during the first quarter of 2011. Research by PwC revealed 429 companies were declared insolvent in the three-month period – down from 433 on the previous quarter.
Nationally, 3,657 companies became insolvent in the first quarter of 2011 compared to 3,829 in the last quarter of 2010 – a 4.5 per cent decrease.
The level of insolvencies fell by 14 per cent compared to the first quarter of 2010.
The small change in insolvencies in the West Midlands reflects “the continuing challenging conditions facing many regional companies”, said accountancy firm PwC.
Matthew Hammond, partner and business recovery specialist at PwC in the Midlands, said: “The improving picture in the UK of declining levels of corporate failure should not lead to complacency and as we can see by the firm’s latest analysis, corporate insolvencies in the West Midlands have fallen only very slightly.
“The UK economy is by no means out of the woods yet and the impact of the government’s public sector spending cuts, which have yet to be felt, are likely to have a further adverse effect on consumer spending and especially on those companies supplying the public sector.”
