Insolvencies in England & Wales: Some signs companies are struggling

Nicholas Hyett, Investment Manager at Wealth commented;

“December is a seasonal low point in terms of insolvencies – with the smaller number of working days affecting the number of insolvencies that are registered. However, a 2% increase year-on-year suggests that companies are struggling with the higher interest rate environment. January’s numbers are worth watching closely, since a disappointing festive period can be the nail in the coffin for businesses that are already under pressure.

Individuals though seem to be faring better. That could be down to increased forbearance on the part of banks after the government lent on the sector to support mortgage holders back in the summer, although increases in Debt Relief Orders and Bankruptcies shows there is clearly financial stress out there, particularly among the less well off.”