North East industries see lower insolvency risk

North East industries see lower insolvency risk

Research released by insolvency trade body R3 North East shows that the regional economy has seen continual improvement over the last 12 months.

The research shows that the risk of regional businesses going into insolvency fell in six of 10 key industry sectors.

The region's transport sector, which has been the most stable across the UK for 11 consecutive months, reported the biggest yearly fall in its insolvency risk, dropping from 24% in February 2015 to just 17% today.

A record 5% drop, to 29%, was reported for the region’s professional services sector, while the retail, agriculture, pub and technologyIT sectors all registered year-on-year improvements of between 2% and 3%.

Neil Harrold, chair of R3 in the North East and a partner with Hay & Kilner Solicitors, said: "Despite some very obvious and difficult bumps in the road during 2015, the general story across the North East over the last 12 months has been one of quiet, steady progress, and it's one that's clearly reflected in the findings of our research.”

The manufacturing, restaurant and construction sectors saw no change and remained stable.