Manufacturing hardest hit by insolvencies says PwC

The new insolvency data has confirmed that manufacturing, along with the construction industry, has been hit harder than at any time since 2009, although it did fare slightly better in the second quarter of 2011 than in the first. In total, 4058 manufacturing companies collapsed between the third quarter of 2009 and the second quarter of this year. By comparison, the retail sector – which has also been badly hit recently – saw 3513 go under over the same period. Latest figures for April to June this year looked a little more positive for the manufacturing sector with 26.5% fewer insolvencies than during the first quarter. PwC manufacturing spokesperson Philip Hines said: "Fewer insolvencies in this latest quarter is definitely encouraging but 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."