Lowest number of bankruptcies in almost 7 years

Statistics Netherlands (CBS) reports that the number of bankruptcies, adjusted for the number of court session days, declined by 113 in August 2015 from July. The number of bankruptcies is at its lowest level since October 2008. The downward trend in the number of bankruptcies continues.

Downward trend

The number of businesses declared bankrupt in a particular month is closely related to the number of days courts are in session. This may vary considerably from one month to the next, so the best way to show development is by a series adjusted for the number of days courts are in session. This method provides a more reliable indicator. August had just as many court session days as July (4).

In August 2015, the number of bankruptcies adjusted for court session days reached the lowest level since October 2008. It peaked in May 2013, followed by a downward trend.

Most bankruptcies in the trade sector

In August this year, 308 businesses and institutions (excluding sole proprietors) were declared bankrupt. This brings the total over the first 8 months of this year to 3,643, i.e. down more than 20 percent on the same period in 2014.

Bankruptcy rates declined in almost every sector. The trade sector had the highest rate with a total of 76, almost 28 percent down from July. There were 46 financial institutions that went bankrupt. These two sectors (trade and financial services) also include the largest number of businesses. Proportionally, the hotel and restaurant sector recorded the highest number of bankruptcies (18).

For more information on economic indicators, see the Economic Monitor.