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Construction insolvencies down 20% month on month in August

Construction insolvencies down 20% month on month in August

By: Construction News20 Sept 2026
Insolvency Service figures show 294 construction business insolvencies in August, down 20% from an upwardly revised 367 in July, though slightly above August 2025's 292. Construction remains the sector with the most business collapses.

Over the 12 months to August 2026, sector insolvencies fell 1.9% to 3,866, led by a 6.2% drop in specialised construction to 2,105, while building construction and civil engineering failures rose. Year-to-date insolvencies stood at 2,629, down 3% on last year.

Separate Creditsafe data showed construction administrations falling for a second month, while the S&P Global UK Construction PMI slipped to 44.3 in August, its 20th consecutive month below 50, with weaker housebuilding activity cited as the main drag.