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Insolvencies rise as economy remains fragile

Simon Quicke

The level of insolvencies across the economy, and in the IT sector, rose last month slightly as the tough conditions continued to have an impact on firms.

The latest insolvency figures from Experian indicate that 0.10% of the UK business population ran into problems last month, compared to 0.09% in September.

There were failures across all sizes of business and in terms of areas the West Midlands was the worst performing.

In terms of the IT sector there were 74 firms running into trouble last month, up 27% year-on-year, although it was nowhere near as high as the 470 business services specialists that went insolvent.

Max Firth, UK & Ireland managing director for business information services at Experian, said that although it was a very small increase month on month, "we are seeing an increase in insolvencies across most sizes of business".

"As a result of this, more and more businesses are now acutely aware of the importance of having a good understanding about the companies they deal with.  Using commercial information to gain insight into a customer, partner or supplier's financial health is a highly effective way to helping businesses make even smarter decisions in today's environment," he added.

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