The West Midlands saw a decrease in the number of business insolvencies in August, according to an information services company.
Some 154 companies in the region were unable to pay their debts, a drop of 6.1 per cent compared to August 2011, according to the latest Business Insolvency Index from Experian.
This was 0.11 per cent of the West Midlands business population, a slight decrease on 0.11 per cent in August last year, according to Experian.
The national picture remained stable in August with 1,723 companies or 0.09 per cent of the business population failing, the same rate as in July 2012 and similar to the August 2011 figures when 0.08 per cent or 1,563 companies failed.
Max Firth, managing director Experian Business Information Services, said: “Since March we’ve seen insolvency rates flatten out, which is a positive and welcome trend.
“In addition, we’ve seen real pockets of improvement, such as in Scotland and Yorkshire, which have been sustained over a number of months now.
“But firms cannot afford to be complacent. They need to continue sensible financial practices such as risk planning and monitoring their financial health and those of their customers and suppliers.”
Nationally firms in the 26-50 employee bracket saw a change from 0.21 per cent in August last year to 0.15 per cent this August – their lowest insolvency rate since December 2007.
Continuing the positive trend shown in July, firms in the 11-25 employee bracket also did well – down from 0.21 per cent last August to 0.08 per cent this year.
Out of the top ten largest sectors in the UK, leisure and hotels fared best, with a drop in the insolvency rate from 0.15 per cent in August 2011 to 0.12 per cent in August 2011 – better than all of the other sectors.
A number of larger sectors saw their insolvency rates increase marginally year-on-year, but the largest increase was in the banking and finance sector, which saw an increase from 0.08 per cent in August last year to 0.12 per cent this year, although this was also a drop from the rate of 0.13 per cent in July this year.