Corporate insolvency levels fell for the 12th month running in August, decreasing from 0.09% in 2012 to 0.08% this year, as London posted the first drop in insolvency levels since March 2013.
According to the Experian Business Insolvency Index for August, nine of the UK’s 11 regions had falling insolvency levels year-on-year, with London levels decreasing to 0.08% in 2013 from 0.10% last year.
The largest fall was in the North East, from 0.12% in August 2012 to 0.09% this year.
Max Firth, managing director of business information services in the UK and Ireland at Experian, said: “We haven’t seen such a prolonged period of stability and improvement in insolvencies for a while and the figures signal an increasingly robust business population, which bodes well for growth.
“What is particularly significant is the biggest fall coming from 51-100 employee companies. It follows on from a strong year-on-year drop in July and will give more confidence to these mid-sized businesses which suffered the most during the recession.”
Medium sized firms employing between 51 and 100 employees saw insolvency levels fall to 0.14% in August from 0.19% in 2012, although large companies employing over 501 staff recorded a jump of 0.11% over the last 12 months to 0.17% in August 2013 (from 0.06% in 2012).
Firth said: “When times are good and businesses and looking to grow, safeguarding the supply chain through business monitoring is integral.
“Businesses need to ensure that they are alerted to any potential issues quickly so sufficient steps can be taken to reduce the potential impact on their business.”
Insolvency levels within the building and construction sector continued to fall for the 10th month in a row, dropping to 0.12% from 0.17% year-on-year, while insolvencies in non-food retailing also decreased, from 0.13% in 2012 to 0.09% in August 2013.