Business Failure Rate Declines – Just!

Although business failure rates fell by a slim 0.4% according to statistics for Q3, a number of key sectors are sending a warning sign to the economy.

The latest figures from Experian analyse company failure notices recorded at Companies House.  They indicate that agriculture, financial services, post & telecoms and business services have all seen an increase in business failures during the third quarter of 2007.

Of the 34 industries reviewed by Experian, 11 recorded an increase in corporate failure in the third quarter of 2007, four were unchanged and 19 recorded a decline. Sectors experiencing a substantial decline in business failures during quarter three included Building Materials (down 69.2 per cent), Hiring and Leasing (down 56.8 per cent), Insurance (down 56.3 per cent), Servicing and Repair (down 42.9 per cent) and Textiles and Clothing (down 40.3 per cent).

Other sectors seeing corporate failures increase in the third quarter included Property (up 18.0 per cent), Food Manufacture (up 10.7 per cent) and Utilities (up 40.0 per cent).