Fewer companies went bankrupt last year than in 2006 but more are likely to get into difficulty this year, according to consultancy PricewaterhouseCoopers.
PricewaterhouseCoopers (PwC) has estimated 11,147 businesses in England and Wales entered into insolvency last year – 7.3% down on previous year. But it predicts tighter credit conditions and a consumer-led slowdown will take their toll on businesses in the coming year.
‘This is not the moment to relax,' Mike Jervis, PwC business recovery services practice partner, said. ‘There remain substantial risks going forward owing to the ongoing impact of the credit crunch and concerns about the extent of consumers' spending power.’
Britain's economy expanded by 3.1% in 2007, its fastest pace in three years. But the economy is expected to grow by less than 2% this year as the credit squeeze and a housing market downturn take their toll, according to Reuters.
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