The number of firms going bust across the south east dipped 21% in the past three months.

Giving a more upbeat picture of the economy, the latest insolvency figures show the region is faring better than most other areas of the country.

According to PricewaterhouseCoopers (PwC), the accounting and business recovery specialists, insolvencies fell from 193 in quarter three (July-September) to 153 in the three months to December 31 (Q4), a dip of 20.7%. The Q4 total is 6.7% down on the same period a year ago.

A 12-month comparison shows a 6.6% fall in the south east, from 767 in year ending December 2010 to 716 in year ending December 2011.

PwC business recovery services partner Karen Dukes said: "The south-east traditionally shows signs of recovery before other regions. This is partly driven by innovative entrepreneurs setting up new businesses which react to the changing environment. The statistics reflect the more up-beat mood we’re seeing, and the ideas we hear our clients generate."