New data published by the Insolvency Service for July 2026 shows that there were 343 company insolvencies in the construction sector, a 3% increase from both June 2026 (332) and July 2025 (332).
The data shows that the number of overall registered company insolvencies in England and Wales was 1,931 in July 2026, 5% higher than in June 2026 (1,847) but 5% lower than the same month in the previous year (2,031 in July 2025).
Mark Supperstone, Partner in Restructuring at S&W, said: "The latest construction insolvency levels increased slightly over the month of July, similar to company-wide insolvencies, however, the sector remains one of the UK's most challenged with many businesses continuing to operate under significant financial pressure.
"There is hope around infrastructure investment and planning reforms, and it is good to see the PMI for July rising to 44.7 – albeit still below 50, indicating decline. While the pace of decline may be easing, activity remains below normal levels and many firms are still grappling with difficult trading conditions.
"We see a key challenge for the sector as one of delivery rather than opportunity. The firms we are advising are not without work, however, they are struggling to convert their pipelines into cash due to delayed investment decisions, planning hurdles and wider economic uncertainty. Supply chain conditions have improved from the disruption seen earlier in the year, but uncertainty continues to weigh on investment decisions and the sector remains highly sensitive to changes in energy, transport and financing costs.
"Government initiatives aimed at boosting housing delivery and speeding up infrastructure development are welcome, but many firms are still waiting to see those ambitions translate into meaningful activity on the ground.
"While gradual signs of recovery are on the horizon, for many businesses the challenge is maintaining their resilience long enough to benefit from it. As always, we recommend careful monitoring of cashflow and speaking to a professional at the earliest sign of financial stress to protect value and restore stability."
