Corporate insolvencies fell again in the West Midlands in the third quarter, according to an international accountancy firm.

PwC analysis showed the number of corporates in the region unable to pay their debts fell from 409 in the previous quarter to 349, a drop of 15 per cent and slightly less than the national average of 18 per cent.

When compared to the same quarter in 2011, insolvencies in the West Midlands fell by 20 per cent

Despite the improving picture, the West Midlands saw the fourth highest number of insolvencies in 2012 compared to other regions.

Matthew Hammond, partner in the businesses recovery services practice at PwC in the Midlands, said: “It is positive news that corporate insolvencies in the West Midlands are continuing to fall.

“What is also encouraging is that the year on year comparison shows that corporate insolvencies in the region fell by double the national average.

“Pubs and restaurants have had a good quarter in the fight against the recession. They continue to combat drops in discretionary spend by enticing consumers with promotions like set menu vouchers, happy hours, and multi buy deals.

“Most businesses will be looking for an uplift in performance over the Christmas period and therefore I would expect a further drop in insolvencies in the next quarter.”

Nationally, hospitality and leisure was one of the worst off sectors in the twelve months to the end of September, with the level of insolvencies rising from 1,464, compared to 1,304 in the year to end of September 2011.

Despite this year-on-year rise, there was a drop in hospitality and leisure insolvencies of 15 per cent in the third quarter compared to the second quarter.

The worst affected sectors continue to include construction, manufacturing, retail, hospitality and leisure and real estate, PwC said.

Mr Hammond added: “Only time will tell if H&L insolvencies continue to decline beyond the Christmas period, but certainly recessionary pressures on leisure spend will continue over the next 12 months.”