UK corporate insolvencies rate 'slows'
Commercial insurance
15th October 2009
There has been a slowdown in the rate of corporate insolvencies taking place in the UK, a new report has revealed.
Figures published by PricewaterhouseCoopers (PwC) indicated that the number dropped in August this year to 1,384, the lowest monthly total since September 2008, the Financial Times reports.
This is an increase on the 1,200 in August last year, before the financial crisis hit Britain, but significantly below the ten-year record of 1,977 registered in March 2009.
PwC Business Recovery Services warned that a further spike could be seen in the statistics as Britain starts to recover from the economic downturn and spokesman Mike Jervis told the news source that insolvency rates are easing but still remain high.
He explained that sharp rises in failures generally occur during recovery because "businesses take their eye off the key factor: cash".
Business liability insurance customers may also be interested in the fact that PwC's Turnaround Directors Survey for September 2009 discovered that 67 per cent of respondents expect more than half of current exercises will prove successful.
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