BusinessBusiness RecoveryBusiness failures drop sharply

Business failures drop sharply

Far fewer businesses will go bust this year after a 'sharp' reduction in failures, according to new research.

Link: Accountants best for business advice

Each week of 2004 is likely to see 310 firms hit the buffers, down from 340 last year, according to BDO Stoy Hayward’s industry watch report. Over the year, that will amount to fewer than 16,000 business failures.

But the report warned that number was likely to rise to 16,600 by 2006 as higher fuel taxes and the national minimum wage provide a ‘bumpy ride’.

The report also found that tightening purse strings meant the wholesale and leisure sectors would bear the brunt of failures over the next two years.

By contrast, the manufacturing sector is expected to suffer just 2,210 failures by the end of the year, down from 2,440 and the lowest since current records began in 1993.

The overall improved picture was attributed to robust overseas demand and sustained consumer spending.

Related Articles

EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

3m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

4m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

6m Alia Shoaib, Reporter
Manor Racing Formula One team company enters administration

Business Recovery Manor Racing Formula One team company enters administration

9m Stephanie Wix, Writer
Oil and gas sector insolvencies hit “new high”

Accounting Firms Oil and gas sector insolvencies hit “new high”

10m Stephanie Wix, Writer
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

7m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

8m Emma Smith, Managing Editor
Business confidence drops to second lowest level since 2011

Business Recovery Business confidence drops to second lowest level since 2011

9m Stephanie Wix, Writer