Business failures point to economic woe
The number of companies collapsing has jumped to nearly 33,000 so far this year, fuelling fears of an economic slowdown.
Link: More UK companies failing in 2002
The business failure rate increased by 7.3% in the first nine months of the year compared to the same period last year, reaching the highest rate for three years, according to D&B, formerly Dun & Bradstreet.
Philip Mellor, senior analyst at D&B, said: ‘Last quarter we had strong hopes that the rate of business failure in Britain had started to decline. I believe it would have done so but for worries about the continuing slowdown in the UK and other European companies.’
Mellor predicted the situation could get worse in the next three months. As consumer spending falls amid fears of rising unemployment.
Business failures in London, often a barometer for the future of the rest of the country, increased by 8.3%, including a 25% increase in smaller business bankruptcies.