Business Insolvency Rates

The latest Insolvency Index from Experian, the global information services company, has revealed that the rate of insolvencies dropped to 0.08% in August, its lowest point since February.

While these figures are encouraging it doesn’t necessarily paint the whole picture as a lot of small to medium sized businesses are still finding trading conditions very tough. With a lot of companies just treading water stagnation in the economy seems to be one of the biggest issues facing UK plc.

Region	Insolvencies August-11	% change from August-10	% of business population failing August-11	% of business population failing August-10	Financial Strength Score August-11	Financial Strength Score August-10
Scotland	72	51.39	0.09%	0.06%	80.03	80.91
North East	26	65.38	0.11%	0.06%	80.05	81.27
North West	184	2.72	0.10%	0.10%	78.70	80.49
Yorkshire	152	-21.05	0.10%	0.13%	79.22	81.14
Wales	44	4.55	0.08%	0.08%	79.36	80.67
West Midlands	131	25.19	0.11%	0.08%	78.60	80.17
East Midlands	99	-18.18	0.07%	0.09%	79.93	81.40
Eastern	106	22.64	0.07%	0.06%	80.26	81.94
South West	93	0.00	0.06%	0.06%	81.37	82.73
Greater London	287	18.47	0.07%	0.06%	77.07	79.88
South East	197	25.89	0.08%	0.06%	80.48	82.22
Grand Total	1,391	12.37	0.08%	0.07%	79.18	81.06

Source: pH, an Experian company

Number of employees	Insolvencies August-11	% change from August-10	% of business population failing August-11	% of business population failing August-10	Financial Strength Score August-11	Financial Strength Score August-10
1-2	233	22.63	0.05%	0.04%	76.32	80.24
3-5	237	1.72	0.11%	0.10%	82.36	82.22
6-10	230	5.50	0.17%	0.17%	81.47	81.84
11-25	213	3.40	0.21%	0.20%	81.40	81.40
26-50	100	12.36	0.21%	0.19%	81.30	81.12
51-100	44	18.92	0.16%	0.14%	81.25	81.05
101-500	32	10.34	0.12%	0.11%	81.19	80.87
501+	8	-38.46	0.09%	0.14%	82.43	82.05
Unspecified	466	23.94	0.05%	0.04%	85.91	84.50
Grand Total	1,563	12.37	0.08%	0.07%	79.18	81.06

Source: pH, an Experian company

Sector	Insolvencies August-11	% change from August-10	% of business population failing August-11	% of business population failing August-10	Financial Strength Score August-11	Financial Strength Score August-10
Extractive Industries	1	–	0.07%	0.00%	80.74	82.47
Oil	6	50.00	0.22%	0.14%	84.55	85.84
Building & Construction	265	7.29	0.16%	0.15%	76.66	77.57
Building Materials	10	233.33	0.27%	0.08%	78.93	79.81
Chemicals Industry	1	-66.67	0.04%	0.11%	80.81	81.85
Diversified Industrials	45	9.76	0.22%	0.19%	77.19	77.94
Electricals	13	18.18	0.14%	0.12%	78.73	79.20
Engineering	36	-28.00	0.09%	0.12%	78.89	79.39
Printing, Paper & Packaging	5	-16.67	0.15%	0.19%	78.11	78.64
Textiles & Clothing	18	-18.18	0.12%	0.15%	75.34	76.51
Breweries	–	–	0.00%	0.00%	76.66	79.71
Spirits, Wine & Tobacco	–	–	0.00%	0.00%	80.52	82.33
Food Manufacturing	9	-25.00	0.14%	0.19%	77.08	77.89
Pharmaceuticals	5	150.00	0.39%	0.16%	81.92	81.68
Wholesaling	64	-9.86	0.10%	0.11%	78.80	79.75
Leisure & Hotels	134	27.62	0.15%	0.12%	77.94	79.34
Media	48	2.13	0.08%	0.07%	79.12	80.58
Food Retailing	17	30.77	0.11%	0.08%	74.22	75.74
Non-Food Retailing	84	1.20	0.10%	0.10%	77.51	78.84
Servicing / Repair	13	116.67	0.17%	0.07%	81.54	82.12
Transport	57	9.62	0.11%	0.10%	77.64	78.44
Utilities	4	33.33	0.17%	0.14%	76.55	79.62
Postal & Telecommunications	7	16.67	0.08%	0.07%	74.83	76.36
Agriculture, Forestry & Fishing	10	100.00	0.05%	0.02%	84.03	85.04
Banking & Financial Services	40	-21.57	0.08%	0.10%	82.65	83.91
Health & Household	–	–	0.00%	0.00%	78.25	79.25
Business Services	349	19.11	0.07%	0.05%	79.14	81.44
Hiring & Leasing	11	-8.33	0.08%	0.09%	80.96	81.54
Property	83	6.41	0.06%	0.05%	80.76	82.40
Other Services	103	66.13	0.05%	0.03%	84.16	85.90
Plastics & Rubber	8	-52.94	0.12%	0.26%	77.64	78.10
Insurance	13	333.33	0.11%	0.03%	83.26	84.13
IT	48	9.09	0.05%	0.04%	81.45	83.54
Motor Traders	35	34.62	0.10%	0.07%	79.25	80.08
Unspecified	21	61.54	0.02%	0.01%	68.55	75.63
Grand total	1,563	12.37	0.08%	0.07%	79.18	81.06

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