Company wind-ups 30% down

The number of construction companies in England and Wales that were wound-up in the first quarter of 1994 was 30% down on last year, according to new figures from the British Chamber of Commerce.

The statistics show that 679 firms went under in the first three months compared to 968 in the same period last year and 728 in the previous quarter.

Individual bankruptcies in the industry were down 24% on last year but, at 1,006, were almost the same as the previous quarter (1,011).

The figures show that across all industries corporate insolvencies have dropped for seven straight quarters up to June this year.

But sector analysis for the second quarter of this year is not yet available.

The trend was welcomed as a sign that the recovery was continuing in many industry sectors, including construction.

Richard Brown, deputy director-general of the British Chambers of Commerce, said: 'This seventh quarterly fall in corporate insolvencies is welcome news, and because business order books are filling up, and capacity utilisation is rising, we have every reason to believe that the trend will continue.

'The knock-on effects of falling insolvencies will themselves contribute to the recovery.

'Fewer firms going bust means fewer bad debts to suppliers and higher levels of consumer confidence that come from increased job security.'