Number of company bankruptcies continues to fall
The number of corporate insolvencies decreased again in June. A total of 1,169 companies filed for insolvency last month, which is eight percent less than in May, as the Leibniz Institute for Economic Research Halle (IWH) announced on Tuesday. In May, the number of corporate insolvencies had dropped for the first time since November. "The decline in insolvencies is broad-based," explained IWH researcher Steffen Müller. According to him, the numbers in all sectors were partly significantly below the respective peak values of the previous years in some places. In many sectors, this peak was reached in April 2024.
However, there are still 11 percent more insolvencies than in June of the previous year. And compared to the June average of the years 2016 to 2019 before the Corona pandemic, the number of corporate insolvencies according to IWH is 24 percent higher.
In the top ten percent of insolvent companies in June, according to the Institute, there were 9,500 employees affected. This was fewer than in May and fewer than in June 2023.
The IWH evaluates its monthly insolvency trend based on the current insolvency notices of the German registration courts and links them with the balance sheet figures of the affected companies. The Institute collects forward-looking indicators that indicate the insolvency process two to three months in advance. Expert Müller expects the insolvency numbers to rise slightly in July. No clear trend can be discerned for the further months.
Company bankruptcies continued to decrease in June, with only 1,169 filings, representing an eight percent decrease from May. Unfortunately, despite this decrease, the number of company bankruptcies in June was still 11% higher than the same month the previous year.
