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European Economic News

UK Company Liquidations, Personal Insolvencies At 5-Year Lows

By RTTNews Staff Writer   ✉   | Published:   | Follow Us On Google News
rttnewslogo20mar2024

The number of company liquidations and individuals becoming insolvent in England and Wales decreased in the first quarter to the lowest level in five years, indicating that the economy is gaining strength and households' personal finances are improving.

The number of corporate liquidations, on a seasonally adjusted basis, fell by 15.8 percent annually to 36,19 in the first quarter, the lowest level since the second quarter of 2008, preliminary estimates from the Department of Business, Innovation and Skills showed Friday. Compared to the fourth quarter, the number of companies granted insolvency was lower by 5.3 percent.

At the same time, personal insolvencies, on an unadjusted basis, fell sharply by 12.9 percent from the first quarter of 2012, hitting the lowest level since the first quarter of 2008. Sequentially, their number dropped by 1.8 percent.

The U.K. economy expanded at a faster-than-expected rate of 0.3 percent in the first quarter and averted a triple-dip recession, largely underpinned by an expansion in the dominant service sector even in the face of austerity program.

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