An increasing number of companies are at high risk of going bust in the fall-out from the pandemic, according to the latest business distress tracker from Opinium and economics consultancy CEBR.
But they found more businesses have a positive outlook for the next year than those with a negative view.
Half of manufacturers and construction firms surveyed said they believe current trading conditions are good thanks to restrictions being lifted in those sectors first.
With lockdown still in place for many retailers and services firms, just 28% of those in that sector said trading conditions were good, found CEBR (the Centre for Economics and Business Research).
While there was an increase in the number of firms believing they are safe from insolvency - up from 58% to 63% - there was a worrying rise in companies that now believe there is a high risk of entering insolvency due to Covid-19 - at 544,000, up from 510,000 two weeks ago.
As hopes of a V-shaped recovery have long since faded, the study confirmed fears the economy will face a lengthy road to bounce back, with firms expecting it to take 31 weeks to get back to pre-crisis levels - up from 28 weeks previously.
