The construction sector in Yorkshire is showing signs of recovery, according to new research.

A report by insolvency trade body R3 found that the sector was performing better in the region than in many other parts of the UK.

R3 said Yorkshire had the third lowest level of construction firms with a higher than normal risk of insolvency this month – with just 24.3% or 4,219 firms in this position compared with a national figure of 26%.

While the regional figure is 1% higher than for December, the previous two months saw slight falls of about 0.3%.

Yorkshire and Humber was also among the top-performing regions in the manufacturing sector with only 17.4% of businesses at higher than normal risk compared with the national figure of 20%.

The hotel sector in the region also experienced a continuing decrease in businesses at risk, falling by 2.7% to 16.4% compared with 18.5% across the UK.

“The construction industry was amongst those hardest hit by the recession and has proved slow to recover,” said Chris Wood, Yorkshire R3 committee member and partner at Clough Corporate Solutions in Cleckheaton. “While it is too early to talk of a sustained improvement, any positive signs are encouraging.

“As one of the prime drivers for economic recovery, it is good to see that construction in our region is performing relatively well compared with many other parts of the UK.”

He said: “Other sectors in Yorkshire, particularly manufacturing and hotels, are continuing to put in a strong performance and it is hoped that the recovery will prove less patchy as we build on last year’s economic growth.”