Peak figures for unemployment and personal and corporate insolvency are on the way, according to a red flag report from recovery and restructuring specialists Begbies Traynor.
The UK may at the mid point of a ‘W’ shaped recession, with a deluge of business failures still ahead of us in 2010, according to the latest Begbies Traynor report.
The report notes that statistics from recessions over the past 40 years show that insolvencies peak between one and two years after GDP stops shrinking. Scarce credit after this recession may intensify this effect, it claims, which may cause a substantial rise in insolvencies during 2010 and into 2011.
Sectors most impacted by adverse actions in Q3 2009 were engineering and recruitment, with critical actions up 31% and 12% respectively o...