The latest BusinessIQ Insolvency Index from global information services company Experian reveals a 3.1% drop in the number of business insolvencies in September 2012 compared to September 2011.
Highlighting a stable picture amongst businesses, the data shows that during September, 0.08 per cent of the business population (1,679 companies) failed.
Smaller firms (those employing one to 50 people) saw the greatest improvement in their average insolvency rate compared to September 2011. This was led by firms with 26 to 50 employees that saw their insolvency rate fall from 0.23% to 0.19%, while firms with six to 10 employees saw their insolvency rate fall to 0.13%, the lowest since January 2011.
The only year on year increase in insolvency rates came from larger firms, those with 51 to 500 employees.
Max Firth, managing director, Experian Business Information Services, UK&Ireland, said: “Overall insolvency figures are down and the picture remains stable, which is encouraging. In addition, we’ve seen real pockets of improvement, such as in the West Midlands and South West, which have both seen a drop of over 30%. However, larger firms experienced a slight increase in insolvencies, which may lead to smaller firms that were supplying to them, experiencing a knock on effect.”
Figures for the West Midlands showed the total number of insolvencies were down by 34% in September 2011 to 0.07%, hitting the lowest rate since June 2007. The picture in the South West was also relatively good compared to the rest of the UK – with a fall in its insolvency rate from 0.09% in September last year down to 0.06% in September 2012.
Yorkshire and the South East were the only regions to see an increase in insolvency figures on September 2011.