Insolvency rate still low
DESPITE the subdued economy the insolvency rate was low in May at 0.08%.
The Business Insolvency Index from Experian shows that the insolvency rate fell in seven out of the eleven government regions in May 2013 – an improvement on the same month in 2012, when just one region, Yorkshire, saw an improvement on the previous year.
Insolvencies in the North West fell from 0.11% in May 2012 to 0.10% in May 2013. Nationwide 0.08% of businesses failed, down from 0.09%.
The best performance compared to last May was amongst companies with 6-10 employees (down from 0.20% to 0.16%). The insolvency rate amongst all companies with less than 10 employees (representing 1.8 million businesses) has not risen for the last four months.
The construction industry had the highest insolvency rate of 0.14%, or 249 businesses, although this was an improvement on last year’s 303, or 0.18%.
Max Firth, managing director, Experian Business Information Services, UK&I said: “What a difference a year makes – May’s insolvency figures has shown improvements across many areas of the UK. What’s particularly pleasing is that insolvencies among smaller businesses, which are the backbone of the UK economy, are showing a longer-term change for the better, whilst building and construction firms can also take heart at the drop off in insolvencies after a particularly difficult period.”
