THE number of companies going bust in the north west has fallen, but experts predict a `wave of insolvencies' in the second half of 2009.

Accountancy giant KPMG today said 35 firms in the region went into administration during May, compared with a monthly average of 48 for the year to date.

However, Brian Green, head of KPMG Restructuring in the north west, said it was a `temporary reprieve' with the automotive, property, leisure and tourism sectors likely to be hit the most in the coming months.

"Time is running out for businesses in a number of sectors where conditions have not improved," he said.