PwC's analysis of the national corporate insolvency statistics has found that 5,331 companies entered insolvency in the fourth quarter of 2011 - this is an increase of 6.9% on the same quarter of 2010 but a decrease of 1.1% compared to the previous quarter of 2011. 

The cumulative total insolvencies for all of 2011 were 4.2% higher than the whole of 2010. 

Matthew Hammond, partner in the business recovery services practice at PwC in the Midlands, commented: 

"The 2011 full year insolvency numbers highlight the worrying trends in the economy.  Reflecting the picture here in the Midlands, the most exposed areas are in the construction and retail sectors, where administrations increased by 8.7% and 10.7% respectively in 2011. Nationally, receiverships in the property sector also increased by 8.4%. 

"The proportion of insolvencies accounted for by liquidations increased by 1% - suggesting that smaller companies are suffering more.

"Historically, first quarters are peak periods for insolvency volumes and anecdotal evidence suggests that 2012 is following this trend. 

"Our advice to companies remains constant - be realistic about sales, undertake robust cash flow planning and keep your stakeholders informed."