Following a 6% increase in the total number of insolvencies during 2011, we are predicting another marginal increase in 2012 however these are expected to occur largely in the SME market. Business failures rose by 5.8% in 2011, compared with 2010, to stand at 23,600. The annual number of business failures is expected to increase until 2013, at 9.3% above the 2011 level, before gradually declining.
Our latest forecasts for the UK economy suggest only a 0.4% GDP expansion in 2012 – notably lower than the Office for Budget Responsibility’s forecast of 0.7% . Modest growth and rising unemployment mean we expect business failures to rise this year compared with 2011. Failures in 2013 will also be marginally higher than in 2012.
Industry Watch is a unique quarterly publication which analyses the trend of business failures in the United Kingdom. Using detailed quantitative analysis of the factors influencing the cash flow situation of businesses in various industries we predict what will happen to the number of businesses in difficulties over the next three years. The Industry Watch report and the underlying model is the only publication which assesses demand, cost and financial issues affecting sector industry health. Based on the economic forecasts by the centre for economics and business research ltd we are able to draw a detailed picture of business failures by industry. The resulting projection is an invaluable planning tool for banks, accountancy practitioners, service providers and companies in the industries themselves.
We work with The Centre for Economics and Business Research (Cebr) to put together the report. Cebr is a leading independent commercial specialist economics consultancy.
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