British businesses have held their nerve so far since Brexit, with corporate levels of “significant” financial distress falling by 6% over the past three months.
The figures, from insolvency firm Begbies Traynor, also showed that the number of UK businesses in significant financial distress was down 2% compared to the same quarter a year ago.
The construction sector enjoyed the most improved financial health in the three months to October, with saw an 11% drop in firms in significant distress.
The industry has bounced back from the Brexit shock: in July construction activity initially shrank at its fastest pace since 2009. It is set to benefit from recent policy announcements including the £3 billion Home Builders Fund, plans to accelerate construction on public land and use more brownfield sites.
Professional services firms also had a buoyant quarter, with the number of firms in significant financial distress down 10% to 11,745.
Ric Traynor, Begbies’ executive chairman, said: “It is still too early to tell what longer term impact the ‘Leave’ decision might have on the UK economy. Clearly though, the stronger the UK economy becomes pre-Brexit, the better it will be able to withstand any post-Brexit shocks.”
Partner Julie Palmer added law firms and consultancies enjoyed a boost from firms dealing with Brexit.