Company insolvencies fell in May

According to official data by the Insolvency Service there was fewer companies that fell into insolvency in May compared to the month before.

There has been a pickup in activity in England and Wales and insolvencies fell 6% month on month to 2,006.

This is somewhat 21% lower compared to May last year.

Benjamin Wiles, managing director at data company Kroll, said, “Compared to this time last year, we are seeing a pickup in business activity with key indicators showing improving consumer and business confidence.

“While I think it’s fair to say that we aren’t quite out of the woods, compared to twelve months ago when businesses were managing unpredictable cost inflation and energy bills, it does feel there’s now a lot more certainty for companies to plan.”

David Hudson, partner at consultant FRP, said, “Insolvency levels appear to be stabilising, however many businesses still find themselves in a perilous state of limbo.

“Economic growth has stagnated after a positive couple of months while many investment decisions remain on pause as we await predicted interest rate cuts and the outcome of the General Election – a particular risk in sectors like construction where purdah can stall planning decisions.”