UK businesses are going bust at an increasing rate, in contrast to other major European countries, according to figures out this week from analyst Dun & Bradstreet (D&B).
Latest government figures suggest that manufacturing businesses make up most of the new failures.
More than 38,000 companies failed in the UK in 1998, an average of 106 per day up 6.2% on 1997. France saw failures fall 14.3%, in Italy the fall was 18.5%, and in Austria failures were down 38.3%. Germany was the only other major European country to see failures rise (up 1.6%), while Ireland saw the biggest rise, of 22.9%.
‘Britain is further ahead in the worsening economic cycle than the rest of Europe,’ said Philip Mellor, D&B’s senior business analyst. ‘We do not anticipate any improvement in the rate of business failure until the latter half of this year.’
Swedish-owned pump maker Svedala is to make 60 of its 165 staff redundant. It blamed a downturn in the market and competition from low-wage manufacturers in Brazil and Africa.