Business failures in Yorkshire have fallen for the second consecutive month, according to figures released today.

They are down by 31.5 per cent in March, according to figures from professional services firm Deloitte & Touche. The receding level of failure is accompanied by a mood of growing optimism in financial markets since the victory in Iraq, says the firm.

The total number of receiverships and administration appointments in Yorkshire and Humberside fell to 13 last month, compared with February's total of 19 that reversed a rising trend. January's total of 23 was nearly double December's figure.

The numbers often fall in March.

But this year's spring optimism may have been boosted by an early conclusion to hostilities.

Nationally there was also a decrease, with the figure for March down by 25.6 per cent at 142 from 191 in February.

Angus Martin, reorganisation services partner in the Leeds office of Deloitte & Touche, said there were grounds for optimism but advised caution.

He said: "The quick end to the war should help to redress economic uncertainty but the economy could still face a period of slow growth, although the signs now look more promising."