Business failures drop quarter on quarter

The Equifax Quarter 3 2009 Business Failures Report shows that although, year on year, there are still increases in failures in most sectors and regions of the UK, the number of businesses going under in Quarter 3 has dropped in every part of the country and every business sector compared to Quarter 2.

Neil Munroe, external affairs director, Equifax, believes this is a definite sign of the UK economy picking up from the sharp downturn which kicked in from mid last year, but is also adding a word of caution.

“Certainly the rate of failures in businesses has slowed down from the very high year on year increases we were seeing at the end of 2008 and in the early months of 2009” said Neil Munroe. “But, of course, what we must remember is that we are now comparing numbers with those at the back end of last year when failures were already on the rise.

“I think it is more significant that Quarter on Quarter the numbers of businesses failing is on the decline. This is by 13.5% overall and in some areas by as much as 25%. Indeed this is the first Quarter for over a year when we have seen every region of the country and every business sector report a drop in failures. And this must give businesses in general and the UK economy as a whole some confidence that the extreme difficulties we have been experiencing may be lessening.”