Corporate insolvencies within the UK rose slightly in October as businesses struggled to cope with the tough economic climate, newly released statistics reveal.
According to the latest Insolvency Index published by Experian, some 0.10 per cent of the nation’s businesses became insolvent over the course of the month.
This compares with 0.09 per cent in September, while it also represents an upturn in corporate insolvencies when compared to this time last year, with just 0.08 per cent of firms receiving winding up orders in October 2010.
More specifically, the figures show that, while businesses in the north-east of England and in the Midlands continue to be hardest hit by the economic slowdown, those located in the south-west are managing to fare somewhat better, with just 0.06 per cent of the region’s businesses going insolvent over the period in question.
Meanwhile, the oil industry was found to be the most resilient of all sectors of the economy, though at the other end of the scale, food retailers appear to be bearing the brunt of the downturn.
Releasing these latest figures, Experian’s UK and Ireland managing director for business information services Max Firth advised businesses to do their homework and check that any potential trading partner is unlikely to be seeking out business recovery services before entering into an agreement.
“Using commercial information to gain insight into a customer, partner or supplier’s financial health is a highly effective way to helping businesses make even smarter decisions in today’s environment,” he said.
This comes as business leaders comment on the chancellor’s autumn statement, with the CBI in particular welcoming the pledge to step up capital spending rates, as well as the government’s recognition that the nation’s most energy-intensive users need an extra helping hand as a result of the ongoing rises in manufacturing costs right across the world.