Number of British companies going out of business falls by nearly 10% compared to last year despite recession
The robust nature of British businesses has been reflected as the number of companies going bust last month fell despite the UK experiencing its longest double-dip recession since the 1950s.
A total of 1,776 companies became insolvent in July - a fall compared to the 1,962 firms that went bust during the same month in the previous year - according to the Business Insolvency Index released by Experian.
Further evidence that British businesses are adapting well to the tougher economic climate is that Scotland's insolvency rate dropped to its lowest level in two years following a 25.3% fall, when viewed in comparison to the number of companies going bust last July.
The study also found that insolvencies among the UK's non-food sector fell the furthest - to just 0.1% in July compared to 0.2% a year earlier.
Meanwhile, the news has not been so good for the car market, which has suffered with insolvencies going up by 41.7%
Among the top employers were the biggest and smallest firms - those that employ more than 500 staff and those that have jobs for between 11 and 25 employees.
Max Firth, managing director of business information services at Experian, said: "Since March this year, when the insolvency rate peaked at 0.11%, it has remained fairly stable - between 0.08% and 0.09%.
"The lack of any real increase is clearly welcome and this picture is unlikely to change in the near future.
"The figures continue to underline the importance of good insight into the financial risks associated with insolvencies among both clients and suppliers and how these issues can affect their business."
However, it has been suggested that one of the reasons why insolvencies are down is the rise in the use of rescue deals known as company voluntary arrangements (CVAs), where firms avoid going into administration by asking lenders and creditors - such as landlords - to renegotiate their debts.
A separate study from accountancy firm Wilkins Kennedy shows that there was a 10% increase in the number of CVAs in the year to June 30 to 769.
Copyright Press Association 2012