Statistics Netherlands (CBS) reports that the number of bankruptcies, adjusted for the number of court session days, was approximately the same in July 2015 as in June. In the last two months, the number of bankruptcies has been at the lowest level since January 2009 and the downward trend continues.
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. July had 4 court session days, while June had 5.
Therefore, bankruptcies should be adjusted for the number of days courts are in session. This method provides a more reliable indicator. In July and June 2015, the number bankruptcies adjusted for court session days reached the lowest level since January 2009. The number of bankruptcies peaked in May 2013. Subsequently, a downward trend has set in.
Most bankruptcies in the trade sector
In July this year, 412 businesses and institutions (excluding one-man businesses) were declared bankrupt. The total number of bankruptcies over the first 7 months of 2015 was 3,325, i.e. 19 percent down from the same period in 2014.
With a total of 97, most bankruptcies filed in July were in the trade sector; 69 financial institutions were declared bankrupt, but it needs to be kept in mind that the sectors trade and financial services include the largest number of businesses. Proportionally, the transport and storage sector recorded the highest number of bankruptcies (21) in July.
For more information on economic indicators, see the Economic Monitor.