Retail insolvencies buck the improving insolvency trend
According to a report by PricewaterhouseCoopers, the retail sector is suffering a big rise in insolvencies in the last 3 months when compared to last year. This is not surprising considering the weather and the dampened consumer confidence. 426 retailers collapsed in the second quarter compared to the 386 a year ago. Of course, Clinton Cards was the biggest company to fail but a number of these have been bought.
Across all the other sectors there has been an improvement in the insolvency rate with, 15.5% fewer construction firms had gone bust than in the previous quarter, and 8.4% fewer manufacturers. This has led to an improvement across all sectors of 3% to a total of 4000. It should be noted that this is an insolvency rate of less than 1%. In the early nineties the insolvency rate was some 2.5%.
Again though, this construction data is not looking at the year on year figure. Construction is having a hard time this year with the cutting back of infrastructure building and new house starts. As such it does appear to be dragging down the GDP figures.