Expert Says Economy 'Bumping Along' At The Bottom
According to restructuring experts at national law firm, Irwin Mitchell, the latest figures from the Government’s Insolvency Service indicate that the turnaround of the UK economy still has a long way to go.
The quarterly figures, which were published on 3 August 2012, revealed that there were 4,115 company liquidations during April, May and June - a drop of 2.4% compared to the same period last year.
Andrew Walker, Restructuring Partner at Irwin Mitchell, said: “These figures are further confirmation of the fact that the economy is still bumping along the bottom.
“Traditionally there is a rise in corporate insolvencies as the economy starts to grow again. With these figures still falling and other recent statistics pointing to a fall in economic output, I think a sustained period of economic growth is still some way off.”
The latest GDP figures revealed 0.7% fall in the three months from April to June. This followed a 0.3% drop in the first three months of the year. Output in the building sector fell by 5.2%, whilst Production output, which includes manufacturing, was also down by 1.3%.