IT insolvencies rise as financial strength weakens

The number of IT firms hitting the wall has risen slightly despite things improving in other areas of the economy with large enterprises holding firm in the face of ongoing uncertainty. The latest monthly insolvency statistics from Experian indicate that across the economy as a whole the number of i

The number of IT firms hitting the wall has risen slightly despite things improving in other areas of the economy with large enterprises holding firm in the face of ongoing uncertainty.

The latest monthly insolvency statistics from Experian indicate that across the economy as a whole the number of insolvencies was the lowest since February. But specifically in the IT arena the numbers rose with 48 firms running into problems in August, an increase of 9% compared to the same month last year.

Across the UK the financial strength of firms fell year-on-year but large enterprises managed to keep the wolf from the door helping to bring some stability to business failure rates.

"While insolvency rates in August were the lowest since February 2011, our analysis shows that regional variances continue to underline the importance of closely monitoring the financial health of the suppliers and customers that companies do business with," said Max Firth, managing director of Experian Business Information Services.

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