Downturn wreaks havoc in services sector

There were 460 corporate insolvencies in the business services sector in July, as several industries were hit by weakened growth and consumption across the economy.

A report from the credit reference agency Experian, which breaks down the number of corporate failures by sector, shows the services sector endured the highest business insolvencies of any industry during July with 460, while the building and construction sector endured the next highest with 305.

The Insolvency Index shows that business failures in the services sector shot up by 30% and 12%, year on year, in the services and building industries respectively. They also increased in the leisure and hotels industry by a third to 141 in July.

These figures follow several warnings from the trade bodies for construction firms that, while consumer demand remains weak, the prospects for this sector look decidedly bleak.

Link to full “Insolvency News” article