According to Statistics Netherlands, 370 businesses and institutions (excluding one-man businesses) were declared bankrupt in May this year, i.e. 84 down from the preceding month. The number of bankruptcies fell noticeably in the sectors trade and manufacturing industry. In May, it reached the lowest level since November 2008.
Most bankruptcies in sector financial services
With a total of 88, most bankruptcies were filed in the sector financial services. In the trade sector as a whole, bankruptcies decreased by 46 to 59. Retail trade in particular saw a significant decline in bankruptcies. In manufacturing industry, the number of bankruptcies was reduced nearly by half, from 38 in April to 20 in May.
The sectors trade and financial services include the highest number of businesses. With 25 and 52 bankruptcies respectively, the sector transport and storage and the construction sector had the highest bankruptcy rates in May.
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 variation from one month to the next. Therefore, the three-month moving average is a more reliable indicator.
The three-month moving average stood at 490 in May, versus 526 in April. In May 2015, the average reached the lowest level since September 2011.
For more information on economic indicators, see the Economic Monitor.