UK construction and leisure businesses have shown significant improvements in the levels of corporate insolvencies, according to latest figures.
Data from Experian’s insolvency index shows insolvency rates fell from 0.16% and 0.18% respectively in May 2012 to 0.11% and 0.14% respectively in May 2013.
Non-food retailing also showed a significant improvement, with insolvency rates falling to 0.12% from 0.16%, whilst printing, paper and packaging firm insolvencies dropped 0.15% in the year.
Max Firth, managing director of business information services in the UK and Ireland at Experian, said: “May’s insolvency figures have shown improvements across many areas of the UK.
“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.”
Overall, 0.08% of the business population, 1,755 companies, failed in May 2013, down from 0.09% the previous year.
However, the IT industry showed the largest increase in insolvencies, with an increase of 0.03% to 0.09% in May 2013 from the year previously.
The servicing and repair sector also saw a marked increase in insolvency rates, growing from 0.08% in May 2012 to 0.15% in May 2013.
Insolvencies within small business with between 6-10 employees dropped from 0.20% last year to 0.16% in May this year, with the insolvency rate amongst all companies with less than 10 employees – approximately 1.8m businesses – not rising for the last four months.
Regionally, insolvency rates dropped year-on-year in seven out of 11 UK regions, compared to just one region improving in May 2012.
The North East of England showed the greatest improvements, decreasing from 0.14% in May 2012 to 0.11% in May 2013.