Dramatic drop in East Mids business failures
The East Midlands showed the strongest improvement in the number of businesses collapsing in the UK over the past two months. That’s according to a survey from business information service Equifax, which suggested that the number of businesses going bust in the region fell by more than 23 per cent.
The Equifax survey said that the East Midlands had performed better than any other region in terms of business failures throughout October and November this year, with a drop of 23.2 per cent compared with the same two months in 2009.
For October/November 2010, there was an average drop in the number of business failures of 4.6 per cent compared to the same two months in 2009.
According to Equifax, the results of the study suggest that “prudent business management” could be the answer to private sector survival.
Neil Munroe, external affairs director at Equifax, said: “Whilst the 4.6 per cent drop in year on year failures for October/November is compared with a period when the UK economy was still in quite a bit of turmoil, these figures should be encouraging to businesses and the government.
“However, given that last week’s unemployment figures showed no increase in private sector recruitment, it could well be that survival has been at the cost of growth. We believe companies may have also maintained pay freezes to ensure they can weather the current difficult conditions.”
