IT insolvencies rise as UK heads back into recession

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IT insolvencies rise as UK heads back into recession

Simon Quicke

The number of IT firms hitting the wall grew last month revealing the cost to businesses of struggling to keep trading in a double-dip recession.

The latest insolvency figures from Experian might have shown that overall across the economy things remained stable year-on-year but specifically in the IT sector 88 administrations, up 25% from the number that failed in March 2011, trading conditions have clearly been difficult.

Other sectors to suffer a bad month in March included business services, which saw 495 firms run into trouble, along with the construction industry and those operating in the property market.

Max Firth, UK managing director for Experian's business information services division, said that even in those regions of the country where insolvencies had been high there were still, "potential pockets of opportunities for organisations to extend credit and increase business" but he urged all firms to remain vigilant about weighing up the risks before trading with companies.

It was officially confirmed yesterday that the UK is in a double-dip recession, the first since the 1970s, and the growth that the government had been expecting was taking longer to appear.

George Osborne, the chancellor, has indicated that despite the low growth numbers it will stick to its deficit reduction programme.


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