Construction sector represented 17% of insolvencies in December 2023

A total of 2,522 companies became insolvent in December 2023, with 429 of these coming from the construction industry, reveals new data from Creditsafe.

The total number of UK company insolvencies for 2023 rose to 30,199. This number represents a 24% increase compared to the same period in 2022 and a 74% increase compared to 2021.

Year-to-date, construction also accounted for 17% of all companies in 2023. 

Despite the total number of insolvencies decreased by 7% compared to the previous month (November 2023) and the total number of insolvencies decreasing by 1% compared to the previous year (December 2022), Creditsafe, highlighted why these numbers of insolvencies are so high. 

In recent months, companies have been affected by multiple economic issues, including cautious consumer spending and rising costs.

Alongside these, requests for wage increases, and higher energy bills are also hitting businesses hard as the costs of cooling premises in the summer are just as challenging as keeping them warm in the winter. 

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