The underlying health of UK businesses is improving according to credit specialist Experian with the rate of insolvencies in January 2010 the lowest since June 2007 and IT company failures declining slightly.
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The company reported an insolvency rate of 0.07% - equivalent to seven companies in every 10,000 going bust - well down on the rate of 0.09% at the beginning of 2009 and the level of 0.11% at the end of it.
The rate of failure for IT companies was below the average at 0.05% and IT was one of the sectors that saw a slight decrease in insolvencies in January with 53 businesses going under.
The figures for January continue a welcome trend for IT businesses with the rates of insolvencies declining from 0.09% in December 2008 to o.o7% in December 2009.
Rolf Hickmann, managing director of pH, an Experian company, said it was encouraging that the rate of insolvency was lower than at any time since the start of the current financial crunch. "Whilst it is too early to predict whether we are fully out of the woods, this does hint at an improvement in the health of UK businesses," he added.
The figures also showed Yorkshire had the highest rate of insolvencies at 0.13%, slightly better than the 0.15% in January 2009, followed by the North East with 0.12%.
The highest rate of insolvencies was in companies with 11-25 employees, 26-50 staff and 51-100 workers at 0.19% although, in all cases, the rate was an improvement on January 2009.