Company failures in the sector dropped almost 15% in Q2 2010 from Q1 as businesses tightened control of costs and cash, said Equifax in its The Business Failures Report for Quarter Two 2010 report.

The study revealed that 663 manufacturing companies had failed – 116 fewer than the first quarter and 20% less than a year ago.

The drop was better than that for transport and communications, construction, wholesale and retail – all of which also did better than in the first quarter.

Equifax head Nic Beishon said the indications countered "speculation" that the country was heading for a double-dip recession.