The latest Business Insolvency Index from Experian shows 210 construction firms went to the wall in August compared to 293 a year earliers.
The biggest falls were among medium-sized contractors with 51-100 employees.
Max Firth, Managing Director, Experian Business Information Services, UK&I said: “We haven’t seen such a prolonged period of stability and improvement in insolvencies for a while and the figures signal an increasingly robust business population, which bodes well for growth.
“What is particularly significant is the biggest fall coming from 51-100 employee companies.
“It follows on from a strong year-on-year drop in July and will give more confidence to these mid-sized businesses which suffered the most during the recession.”