'Trouble' ahead for business
The number of company distress signals may have fallen during October but experts remain convinced there is trouble ahead for many businesses.
Figures show that 458 businesses reported difficulties in October, compared with 499 in September, suggesting the impact of the 11 September attacks has yet to be fully felt.
The figures, compiled by KPMG and Mandis Information Services, report the number of businesses making negative announcements, such as profit warnings and redundancies.
Businesses in the service sector have already suffered with the collapse in tourism and overseas travel, but KPMG now believes these effects will be passed on to manufacturing companies.
Philip Davidson, KPMG’s head of restructuring, said: ‘It is clear that several service industry sectors are taking the brunt of the 11 September effect but we must be aware that this has not yet fully reverberated down the supply chain.’