According to Statistics Netherlands, 446 businesses and institutions (excluding one-man businesses) were declared bankrupt in April this year, i.e. 198 less than in the preceding month. The decrease is largely due to the fact that April had 4 court session days, while March had 5. In April, the number of bankruptcies is at its lowest level since May 2011.
Most bankruptcies in trade, financial services and construction
Most bankruptcies were filed in the sectors trade and financial services, 105 and 81 respectively. The number of bankruptcies in financial services decreased by 25, while the number of bankruptcies in trade remained fairly stable.
The sectors trade and financial services include the highest number of businesses. Construction has one of the highest bankruptcy rates, with 52 bankruptcies in April, that is 35 less than in March. The sector specialised business services (including consultancy and research) saw an even more substantial (38 bankruptcies) decrease.
Average number of bankruptcies decreasing marginally
As the number of businesses declared bankrupt in a particular month is closely related to the number of days that courts are in session, there may be considerable fluctuation from one month to the next. Therefore, the three-month moving average is a more reliable indicator.
The three-month moving average stood at 523 in April, versus 534 in March. The average has fallen noticeable after a peak in mid-2013. In February it was at the lowest level since September 2011. Compared to the peak of mid-2013, the average is still relatively low.
For more information on economic indicators, see the Economic Monitor.