Business failures in construction up by four per cent
Figures up to July 2006 show that overall 3.5 per cent more businesses failed from January to July 2006, than in January to July 2005. But when looking at performance in the individual market sectors, there is an interesting picture of business confidence and lack of it through the UK economy.
Construction sector
The construction sector shows an increase of over four per cent, but the retail sector appears to be faring worst at 14 per cent, with transport and communications showing a six per cent increase in failures. However, the manufacturing and services sectors both appear to be performing better in 2006, each showing a seven per cent decline in business failures year on year.
The sectors that have fared particularly well in the spring and early summer are those that have probably benefited the greatest from a general upturn in consumer confidence. Neil Munroe, External Affairs Director, Equifax, said: "However, the interest rate rise could put paid to that confidence in the second half of the year, which could have a serious impact on these sectors.
"What our figures seems to suggest is that business prosperity is still quite fragile across the UK. And when you see that the number of businesses with a zero credit limit has also increased there should be a concern that business growth is going to be difficult to achieve in the second half of the year."
Sectors
January - July = 2006 UK business failures
Increase or decrease in failures January-July 2006 vs January-July 2005
- Retail: (+14.1 per cent)
- Other: (+7.73 per cent)
- Transport and communications: (+6.3 per cent)
- Wholesale: (+5.3 per cent)
- Construction: (+4.4 per cent)
- Manufacturing: (-7.4 per cent)
- Services: (-7.3 per cent)
Total increases year on year (+3.5 per cent).
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Susie Hughes
The Editor © Hardhatter 2006