- But construction and retail sectors are not out of the woods yet
The latest statistics on administration appointments, issued by the Insolvency Service today, reveal that in the third quarter of 2013 company liquidation appointments are down 2.6% on the previous quarter, and other corporate insolvency has decreased by 3.8% on the same period a year ago. The figures provide continued evidence of improvement in the UK economy, says KPMG.
Mark Firmin, KPMG Restructuring’s UK Head of Regions, says: “These latest figures continue to show an overall trend of improvement across England and Wales. However the picture isn’t as positive for construction or for wholesale and retail sales, with liquidations at 2,976 and 2,137 respectively. This bucks the trend of four consecutive quarters of improvement in the construction sector. As one of the bellwether economic indicators, the reversal of this trend in the construction sector could be of concern and is an area to watch.
“On the personal side, consumer spending will continue to play a pivotal part in this recovery; therefore retailers will be hoping for a positive Christmas trading period, which is so critical to their success. Recent encouraging news of increased retail sales has been boosted by consumers’ use of credit cards. Research issued by the British Bankers’ Association1 showed usage of credit cards is 8% higher than a year ago, with borrowing growing nearly 4% since last August.
“According to these figures, personal insolvencies have seen a small increase rising from 25,717 in Q2 to 26,030 in Q3. Individual consumers’ attitudes to Christmas and how much they spend will determine whether this trend continues.”
For further information please contact:
Lucinda Kemeny or Jade Neal at firstname.lastname@example.org or call 0203 128 8100
Katy Broomhead, KPMG Corporate Communications
Tel: 0161 246 4623 / 07824 537963
KPMG Press office: 020 7694 8773
Notes to editors.
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.