Figure 4: Total Insolvencies in Most Affected Sectors, 2019-2023
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Finance and Insurance
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Professional, Scientific and Technical Services
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When analyzed by sector, construction, manufacturing, retail trade, finance and insurance, professional, scientific and technical services and accommodation and food services all saw significant increases in business insolvencies from 2022 to 2023. In total, these sectors had reported 1,942 insolvencies in 2022, which grew to 2,762 reported insolvencies in 2023, a growth of 42.2%. As shown in Figure 4, of these notable sectors, construction and accommodation and food services continue to experience the highest volume of insolvencies. Over 2023, the construction sector had 681 business proposals and bankruptcies, a rise of 19.1% from 519 proposals and bankruptcies in 2022. For accommodation and food services, the increase was 43.8%, from 500 business proposals and bankruptcies in 2022 to 719 in 2023. The retail trade sector experienced a relatively lower volume of insolvencies than the construction and accommodation and food services sectors. Insolvencies in retail trade continued to be volatile in 2023, averaging 47.8 filings per month with a low of 36 filings in February and the highest volume of 60 filings in December. Compared with the 2022 data for the retail trade sector, there was an increase in business insolvencies in 2023. The average monthly filing volume was 31.2 in 2022 — that is, 34.7% lower than 2023 levels. Since our previous discussion of the professional, scientific and technical services sector in Issue 9, business insolvencies in this sector have continued to grow. After its peak of 43 filings in April 2023, monthly filings averaged 32.3 filings for the rest of the year and ended 2023 with 38 filings in December 2023. By comparison, average monthly filings for this sector was 20.2 filings in 2022 and only 14.2 filings in 2021. It remains to be seen whether business conditions for the professional, scientific and technical services sector will stabilize or continue to worsen in 2024.
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Davies | dwpv.com
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