Commercial insolvencies are at their lowest rate since June 2007, according to the latest data released by Experian.
In January 2012, 0.07% of UK business failed and that figure reduced to 0.06% in January of this year.
The construction and leisure industries, sectors which traditionally suffer some of the highest rates of insolvencies, both saw a decline in insolvency numbers. 0.12% of construction industries entered into insolvency, compared to 0.13% in January 2012. Similarly, the leisure industry saw a drop from 0.13% in January 2012, to 0.10% in January of this year.
As a sector, ‘Business Services’ has been creeping up the table and the latest figures reflect this with the IT sector suffering 0.06% of businesses entering insolvency, up from 0.03% for the same period last year.
January is traditionally a slow time for business insolvencies, but the early 2013 decline does show at least some movement following a stagnant 2012.
While the figures look encouraging for business owners, planning is needed as we approach Spring, and Business rates rises in April.