Corporate insolvency figures released by the Insolvency Service revealed that a total of 2,764 company failures in the sector over the last 12 months.

Graham Bushby, head of RSM Restructuring Advisory LLP, said: “A fall in the level of corporate insolvencies from quarter one to quarter two 2018 of 12.4% is masking an underlying increase for the last 12 months of 12%.

“Yet again the primary industries that seem to be suffering are construction (2,764 insolvencies) and retail (2,197 insolvencies) which both showed the highest number of company failures over the last 12 months.”

Mr Bushby added: “For the construction sector, despite a seemingly never-ending demand for new housing, not all is as rosy as it seems. Material prices have been increasing on the back of a weaker pound, and labour costs have also risen, due in part to Brexit.

“Meanwhile, property prices in many areas have started to flatten. This appears to be contributing to yet another increase in the level of failures in the sector.”