THE region’s construction sector is fighting back against the economy, according to new figures.
Begbies Traynor’s Red Flag Alert shows a 21 per cent decrease in firms in the region facing ‘critical’ financial issues between the third and fourth quarters of 2012.
Construction firms showed a 13 per cent decrease.
Figures for the Portsmouth area showed business health remains steady, though that is set to improve thanks to new projects like the regeneration of Tipner, pictured, where work is under way.
Regional managing partner Julie Palmer, who is based at Begbies Traynor’s Portsmouth office, said: ‘It’s encouraging to see the construction industry showing signs of improved financial performance. When this sector is performing well it has knock-on effects throughout the economy and will hopefully drive other sectors to improved performance.
‘We shouldn’t get carried away however.
‘There are still a significant number of businesses facing difficulty in the region and the overall outlook for 2013 is not pointing to a significant improvement in the economy.
‘What these figures do show is that there is business out there and those organisations who are well managed and in control of their financial position will be in a position to flourish.’
And she added: ‘Our Red Flag figures demonstrate an improvement in the financial health of the construction sector, which we believe reflects the fact that those construction firms that have survived the crisis are now benefitting from improving margins on a lower cost base.’
While the south east’s overall figures are just five per cent below the national fall in businesses facing critical issues overall, the fall in the construction sector is more marked elsewhere.
There have been larger falls nationally in the bars and restaurant sector, with a 25 per cent fall nationally, and 10 per cent in the south east; but better performance locally in media with a 22 per cent national fall in businesses facing critical issues, but a massive 64 per cent in the south east.