Figures reveal UK business collapse, says report
industries has increased dramatically in the first half of 2006,
according to a report published by credit checking group Experian.
The report, which charted overall business failure within 34 UK industries, found that 9,589 companies had folded from January to June - a nine per cent increase on last year's 8,805 collapses during the same period.
The plastics and rubber sector was hardest hit, recording an 88 per cent increase in failure on the previous quarter. In total, 47 firms closed from April to June.
Food retail was also hard hit with a 49 per cent increase in failure over the second quarter.
The printing, paper and packaging sector saw a decline in business failure from 43 per cent to eight per cent over the second quarter. However, coupled with the failings of the first quarter, this sector still has an overall failure increase of 21 per cent for the six-month period.
Despite the heavy losses, the two per cent total decline for the second quarter across all industries is a sign that businesses are stabilising after first quarter failings of 15 per cent - the highest rate of failure since 1999.
Still, Richard Lloyd, managing director at Experian's Business Information Division, remained cautious.
"Although an increase of two per cent is less alarming than the previous quarter's 15 per cent increase, there is no getting away from the fact that in 2006, failures are already up by 8.9 per cent on the previous year and look set to continue to rise," he said in a statement.
Lloyd also expressed concern for the future of UK business, stating they must be extremely vigilant in the coming months due to the possibility of rising interest rates and the trend toward increased business costs for fuel, energy and raw materials.
