A YORKSHIRE insolvency expert today warned that a fall in company administrations in the region could be “the lull before the storm”.
Figures from accountancy firm Deloitte showed that the number of firms going into administration in the region fell by 32% during the second quarter of the year – with 34 cases against 50 in the preceding three months.
But Dan Butters, reorganisation services partner for Deloitte, said: “The credit crunch is beginning to impact the wider economy and it’s likely there is more pain to come.”
Across the UK, there was a 16% rise in administrations during the first half of the year. The second quarter figure was down by 18% on the first three months.
Property, construction, electrical, installation and plumbing were the worst hit sectors with a 54% rise in administrations while media and IT reported a 40% increase.
Mr Butters said falling land values, house prices and mortgage approvals had hit the building industry while rising fuel prices had contributed to a 30% rise in administrations among transport companies.
He said: “While overall administrations are down this quarter, the outlook is still far from rosy. We expect the figures are set to worsen before they improve.”