Manufacturers ‘could drive UK recovery’, says Begbies Traynor – Telegraph.co.uk

However, a comparison of distress levels between the start of this year and
the final quarter of 2011 paints a less rosy picture: warning signs of
insolvency across all sectors rose by 55pc after the pre-Christmas spending
peak subsided.

Construction and leisure firms in particular appear to be suffering, with
respective increases in signs of distress of 94pc and 119pc over the two
most recent quarters.

Ric Traynor, chairman of Begbies Traynor, said: “There is a great deal of
consolidation and contraction still to come in [construction] which could
leave the UK short of capacity when spending constraints loosen.”

Ms Palmer said the survey showed there was “some momentum towards overall
recovery” despite the increases in distress caused by tough seasonal
trading conditions.