The number of companies going into administration has significantly dropped, according to new figures released by KPMG today. While average numbers of administrations per month have been around the 350 mark since the beginning of the year, the latest monthly figures are coming in much lower at an average of 178 per month, the research reveals. Richard Fleming, UK head of restructuring at KPMG said the results were unusual given that the country is in 'quieter summer months' and predicts that this is a temporary reprieve in advance of a second wave of insolvencies. It is thought that HM Revenue & Customs' move to allow companies to delay PAYE and VAT payments has freed up more working capital. Total insolvencies have reached 1,571 this year, but 2009 predictions put the number as high as 5,000. 'Conversations with businesses and lenders suggest this number will be reached quickly after the holiday season with a wave of insolvencies in quarters three and four,' Fleming added. This year has seen a number of high-profile administrations, particularly on the high street, with companies including Woolworths, Zavvi, Whittards, Waterford Wedgwood and MFI. Fleming predicts it will be the automotive sector that will be hit hardest in the second wave of insolvencies, 'particularly the supplier base, where many companies have ever decreasing options in the absence of demands'. He also said that commercial property is likely to suffer, as its problems 'can't be brushed under the carpet for much longer'.