New figures have revealed UK businesses are beginning to bounce back financially following the EU referendum.

According to research from independent insolvency firm, Begbies Traynor, levels of 'significant' financial distress fell by 6% among businesses have fallen in the third quarter of 2016.

Overall, the number of struggling businesses fell from 263,517 in Q2 to 248,916 companies. A total of 92% of these companies were SMEs.

The number of businesses suffering 'significant' distress also fell 2% across the economy compared to last year.

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Begbies Traynor said the findings echo that of the recent construction PMI, which was 52.3 in September, up from 49.2 in August.

Overall, UK businesses across nearly every sector of the economy were showing positive signs of stability.

Julie Palmer, Partner at Begbies Traynor, said: "Our data shows that UK construction firms appear to be bouncing back after the initial Brexit shock, when in July construction activity initially shrank at its fastest pace since 2009. The good news for this sector is that these businesses can also expect a further boost following recent policy announcements including the £3 billion Home Builders Fund, plans to accelerate construction on public land and the unlocking of brownfield sites across the country.

"All eyes now turn to the upcoming Autumn Statement where further announcements are expected in support of SME developers and increased infrastructure spending. If implemented, these measures should put UK construction firms in an even better positioned to survive any potential fallout from the Brexit negotiations."

(LM)