Year-on-year UK business insolvency rates have fallen for the fifth consecutive month, with the leisure and hotel industry also seeing an improvement.
The latest Business Insolvency Index from Experian has shown that insolvencies in leisure and hotel industry dropped from 0.13% in September 2012 to 0.11% in September 2013. It is now an entire year since the sector saw a rise in its monthly insolvency rate.
This compares positively with the most improved sector in the wider report, the building and construction industry, whose rate dropped three percentage points from 0.14% to 0.11%.
Overall, larger businesses across all sectors (with more than 501 employees) have seen a fall in insolvency, from 0.11% in September 2012 to 0.10% in September 2013. Companies with between 100 to 500 employees did even better, from 0.16% in 2012 to 0.09% in 2013.
In comparison, for example, the Food Retailing business rates actually worsened, from 0.06% in 2012 to 0.10% in 2013, as did those for Food Manufacturing (0.06% to 0.15%).
Regionally, across all sectors, the North East of England (0.32% to 0.12%) and Yorkshire (0.12% to 0.09%) saw the most significant drop in insolvency rates; the West Midlands saw a rise, but the East Midlands a drop; while the East, South East, North West and Scotland also saw a drop. London and the South West both stayed the same, at 0.08% and 0.06% respectively.
Max Firth, managing director of Experian Business Information Services UK & Ireland, said: "The drop in larger company insolvencies is welcome news.
"By having a good handle on the financial position of both suppliers and customers, firms can keep on top of risks, as well as investing in growth areas where possible."
Overall, leisure and hotel businesses have not seen a rise in insolvency at all over the past 12 months.