IWH: Insolvencies fall for the second month in a row
Despite a significant increase in the number of insolvencies in the first half of the year compared to the previous one, a slight decrease is noticeable, according to the Leibniz Institute for Economic Research Halle (IWH).
The decrease in insolvencies is broad-based, according to IWH. While many industries reached peak values in April, the numbers are now significantly lower. However, insolvencies have been above average since last year, i.e., before the Corona pandemic.
According to IWH-Insolvency Trend, the number of company insolvencies in June was 1,169. However, no stable trend can be discerned for the coming months based on early indicators.
For its study, the Institute evaluates the current insolvency notices of the German register courts and links them with the balance sheet figures of the affected companies.
The decrease in insolvencies, as reported by IWH, is still not at the pre-corona level, with June seeing 1,169 insolvencies. This Consequence of the ongoing economic instability has kept the insolvency rate above what was observed before the pandemic.
