By Claire West
The property sector may have been the first to be hit by the recession, but the hotel, restaurant and manufacturing industries have suffered the most, according to new research by the insolvency trade body R3.
The figures show that 1.7 per cent of all hotels and restaurants in the UK have become insolvent since the recession began. Manufacturing follows close behind, with 1.6 per cent of businesses having failed.
Although property and construction had the highest number of business failures, due to the large number of businesses within both these sectors the failure rate was much lower than some other sectors at 1.1 per cent and 0.8 per cent respectively.
Matt Dunham, North West regional chair of R3 and a partner at Grant Thornton, said: "The hotel and restaurant sector tends to be vulnerable due to its dependence on consumer spending. It has also suffered from cutbacks by businesses, for example on conferences".
"Manufacturers were also affected by reduced consumer spending and by construction projects being put on hold. Fortunately manufacturing is traditionally one of the first industries to recover when growth returns."
The figures showed that in the property sector, 12,050 of the 1,114,475 businesses went bust while in construction it was 7,184 out of 910,550. By comparison 2,448 of the 145,805 hotel and restaurant businesses failed along with 4,664 out of 299,445 manufacturers.