The percentage of businesses in Yorkshire at higher than normal risk of insolvency in many sectors has held steady for the sixth consecutive month, according to the latest research from insolvency trade body R3.
Of the 11 sectors surveyed by R3, seven saw a monthly fall or no change in the level of companies in the elevated risk category in Yorkshire. Tourism operators experienced the largest fall in companies within the sector judged to be at greater than usual risk between May and June (-1.6%), while the agriculture and restaurant sectors had the largest rise, although this was an increase of only 0.5%.
The manufacturing industry in Yorkshire also experienced relative stability in terms of the proportion of companies in the sector at above-average risk, with the percentage – 38.2% – not changed from last month, and the same as in January of this year.
“There’s been some worrying national data in the last few weeks indicating that Brexit uncertainty may be pushing the UK’s manufacturing sector towards recession.
“After a resilient performance in the run-up to the original March deadline for leaving the EU, it appears that the stockpiling which masked falling confidence is now over, with many businesses reporting weak investment and shrinking order books,” comments Eleanor Temple, chair of R3 in Yorkshire and a barrister at Kings Chambers in Leeds.
“While this, together with concerns about the risk of increasing barriers to trade around the world, gives a fairly gloomy outlook, it appears that manufacturers in Yorkshire are faring relatively well. Indeed, the region as a whole remains fairly buoyant with over half of the sectors surveyed by R3 showing month-on-month decreases in elevated risk.
“However, with the UK continuing to face a lack of clarity about the nature of the Brexit deal, there are still some tough times ahead for businesses – so make sure you seek professional advice at the first signs of financial trouble.”
R3 uses research compiled from Bureau van Dijk’s ‘Fame’ database of company information to track the number of businesses in key regional sectors that have a heightened risk of entering insolvency in the next year.