BUSINESS failures among manufacturing firms rose by 33% in the first nine months of this year, according to analysis by business advisory firm Deloitte.

Administrations in manufacturing rose by 35% in the third quarter alone compared with the same three months last year. Failures among wholesale and distribution businesses rose by 34% followed by the financial sector at 17%.

Dan Butters, Deloitte’s reorganisation services partner in West Yorkshire, said: “The fact that there has been an increase in manufacturing administrations year-on-year is not surprising given the economic climate.

“However, the rate at which they have increased illustrates the fact that the sector is really suffering at the moment.”

He said: “Particularly badly affected sectors include metals and plastics manufacturers, tooling businesses and automotive parts suppliers.

“These industries have been under pressure for years, but the recession and the resulting drop in demand and output has escalated the situation.”