Number of bankruptcies fairly stable

12/11/2014 15:00

According to Statistics Netherlands, 534 businesses and institutions (excluding one-man businesses) were declared bankrupt in October  2014. The number of bankruptcies was about the same as in September, despite the fact that October had one court session day less than September. Compared to August, which had as many court session days as October,  the number of bankruptcies increased by 69.

The overall trend is downward. In the period January-October, 5,634 businesses and institutions were declared bankrupt, 21 percent down from the corresponding period last year, but still nearly twice as many as in the first ten months of 2008.

Most bankruptcies recorded in the sectors trade and financial services

With 107, the trade sector (wholesale and retail) had the highest number of bankruptcies in October 2014. The number of bankruptcies was also relatively high in the sector financial services (101). The number of bankruptcies in the sector trade has decreased over the past few months, whereas the number of bankruptcies in the financial services sector is still increasing. As a result, the gap between the number of bankruptcies in both sectors is narrowing.

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 October, the three-month moving average was 513, up from 545 in September. The average declined considerably after a peak in mid-2013 and is currently at the lowest level in three years, although it remains relatively high compared to the pre-crisis level.   

More figures can be found in dossier Business cycle.          

For more information on economic indicators, see the Economic Monitor.