More bankruptcies due to extra court session day in July

According to Statistics Netherlands, 621 businesses and institutions (excluding one-man businesses) were declared bankrupt in July 2014, i.e. nearly 160 more than in the preceding month. The increase is due to the extra day courts were in session in July. The number of bankruptcies was considerably lower than in July 2013, when 782 businesses and institutions were declared bankrupt. In July 2014, the number of court session days was the same as in July 2013.

Most bankruptcies in the sector trade

From June to July, the number of bankruptcies rose across nearly all sectors, but most notably in the sectors trade (123), financial services (112) and specialist services, e.g. consultancy and research (66).

Bankruptcies of businesses and institutions (excluding one-man businesses)

Bankruptcies of businesses and institutions (excluding one-man businesses)

Downward trend

As the number of businesses declared bankrupt in a particular month is closely related to the number of days courts are in session, it may vary considerably from one month to the next. Therefore, the three-month moving average is a more reliable indicator. In July, the three-month moving average was 546 versus 577 in June. The average fell considerably after a peak mid-2013, but remains relatively high compared to the pre-crisis level.

More figures can be found in dossier Business cycle.          

For more information on economic indicators, the reader is referred to the Economic Monitor.