THE number of North-East companies filing for insolvency has fallen as firms begin to benefit from increased market confidence.

The amount of insolvencies across the region fell from 0.14 per cent in May 2012 to 0.11 per cent in the same period this year, according to new figures from information services firm Experian.

The results come as the North-East Chamber of Commerce says North-East businesses are growing than at any time since the economic downturn.

Its report showed the UK's insolvency rate stayed at 0.08 per cent for the fourth consecutive month, with Scotland continuing its recovery as levels stayed at 0.03 per cent for a sixth month.

The survey revealed the national building and construction trade fared well, with insolvency rates falling from 0.18 per cent in May 2012 to 0.14 per cent this year.

The UK's hotel and leisure sector saw insolvencies fall to 0.11 per cent from 0.16 per cent in the same period, though the IT industry saw insolvencies increase from 0.06 per cent to 0.09 per cent.

Max Firth, managing director of Experian's UK Business Information Services, said: “What a difference a year makes and May’s figures show improvements across many areas of the UK.

“What is particularly pleasing is insolvencies among smaller businesses, which are the backbone of the UK economy, are showing a longer-term change for the better.

“Building and construction firms can also take heart at the drop off in insolvencies after a particularly difficult period.”