"Overall insolvency figures are down and the picture remains stable, which is encouraging"
- Max Firth, Experian Business Information Services, UK&I managing director
The number of U.K. businesses who gave up the ghost fell in September, as mid-size companies saw the greatest improvement in the insolvency rate, erasing 16 per cent to 92 companies. Insolvencies tumbled 3.1 per cent to 1,679 companies last month, after posting a 9.5 per cent drop in the previous month. Despite the better-than-expected data, the recovery may be restrained by the deepening debt crisis in the eurozone.
"Larger firms experienced a slight increase in insolvencies" in September, "which may lead to smaller firms that were supplying to them experiencing a knock on effect," said Max Firth, managing director of Experian's U.K. and Ireland business-information unit. "This highlights the need for firms need to be prudent and consider their credit management practices in order to survive."
"Overall insolvency figures are down and the picture remains stable, which is encouraging."
The FTSE 100 Index lost 0.22 per cent to 5,882.91. The broader FTSE All-Share Index inched lower 0.22 per cent to 3,072.77.
© Dukascopy Bank SA