Bankruptcy rate substantially down

According to Statistics Netherlands, 464 businesses and institutions (excluding one-man businesses) were declared bankrupt in June 2013, i.e. 88 fewer than in May 2014 and the lowest number in three years. The sector specialist services (e.g. consultation and research) accounted for half of the decline. The total number of bankruptcies in June 2014 was also considerably lower than in June 2013, when 712 business and institutions were declared bankrupt.

Bankruptcies fall most notably in the sector specialist services

The number of bankruptcies declined most notably in the sector specialist services. In most other sectors, the number also declined, but in the sectors trade and financial services, for example, the number increased. These sectors also accounted for the highest number of bankruptcies (101 and 86 respectively) in June.

The number of bankruptcies was also reduced significantly in June in the construction sector. Relative to twelve months, the decline in the construction sector from 128 to 45 was in fact the largest across all sectors. Last month, Statistics Netherlands stated that the growth in private sector investments in tangible fixed assets relative to one year previously was again higher in April. Investments in the construction sector predominantly accounted for the increase in investments. The average daily output generated by the construction sector in April was again up from a year previously. Since December 2013, output has continually been above the level of the same period one year previously. 

Number of bankruptcies fairly stable over the first half of 2014

As the number of businesses declared bankrupt in a particular month is closely related to the number of days courts are in session, it may vary considerably from one month to the next. Therefore, the three-month moving average is a more reliable indicator.

With 577 versus 598, the three-month moving average was also lower in June than in May. The average varied around 600 over the first six months of this year and remains fairly stable. But the number of bankruptcies is substantially lower than in the same period in 2013. 

Bankruptcies of businesses and institutions (excluding one-man businesses)

More figures can be found in dossier Business cycle.

For more information on economic indicators, the reader is referred to the Economic Monitor.