THE number of companies entering insolvency has risen by 25 per cent in the region, a survey showed.

In the past three months a quarter more businesses have gone into liquidation, administration or receivership, compared with the same period a year ago.

However, the number was six per cent down compared with figures for the first quarter of this year, the figures by PricewaterhouseCoopers showed.

Business recovery experts at the Newcastle practice of PricewaterhouseCoopers said a total of 81 companies in the region entered insolvency in the second quarter of the year.

The region accounts for 2.7 per cent of all UK company insolvencies, compared to nine per cent in Yorkshire and North Lincolnshire, 13.5 per cent in the North-West and 19 per cent in London.

Sean Hamilton, Business Recovery Services director at PricewaterhouseCoopers in Newcastle said:

"The drop in the number of insolvencies this quarter is an encouraging sign, however, it's too early to say whether this marks the beginning of a trend."