However business advisory firm Deloitte has warned that this could be "the lull before the storm" with the overall situation looking far from rosy.

Deloitte, which analyses all UK administration and appointment figures in industry publication The Gazette, remains cautious about future prospects despite administrations in the region in the second quarter totalling 34 compared with 50 in the preceding three months.

"The credit crunch is beginning to impact the wider economy and it's likely there is more pain to come," said Dan Butters, reorganisation services partner at Deloitte in Leeds.

The harsher economic climate was felt particularly badly in the North East which saw a staggering 466 per cent increase in the first half compared to the same period last year.

Overall, the first half of 2008 saw a 16 per cent increase in administrations compared with the same period in 2007.

There was an 18 per cent fall in the second quarter compared to the first three months of the year.

Property, construction, electrical, installation and plumbing saw administrations rise by 54 per cent compared to the same period in 2007.

Film and photographics, media and IT administrations were up 40 per cent.

Mr Butters said property and construction had seen the most significant increase.

"With the value of land stock declining, house prices and mortgage approvals falling, administrations have risen by over 50 per cent overall compared to last summer," he said.

"Whilst overall administrations are down this quarter, the outlook is still far from rosy. We expect the figures to worsen."