HomeEconomyVery slight increase in corporate insolvencies in June

Very slight increase in corporate insolvencies in June

In the past 12 months, 61,036 breakdowns were reported, slightly higher than in May. The sectors affected included construction, trade and car repair.

The number of business bankruptcies rose very slightly in France in June, stabilising at just above 61,000 bankruptcies over the past twelve months, the Banque de France said on Monday.

After reaching 61,036 failures between June 2023 and May 2024, a figure revised upwards with respect to the first estimate (60,210), the indicator stood in June at 61,081 failures in twelve months.

While they had fallen to historically low levels during the Covid health crisis thanks to the support measures deployed by the State, business bankruptcies seem to be stabilising slightly above their average level recorded between 2010 and 2019 (59,342).

Construction, automotive

Compared to May, business insolvencies rose slightly in June in the construction sector (+222 to 13,513 insolvencies) as well as in the motor vehicle trade and repair sector (+93 to 13,049 insolvencies).

In contrast, they decreased in education, health, social action and domestic services (-235 to 5,460 failures), as well as in agriculture, forestry and fishing (-62 to 1,287 failures).

By company size, bankruptcies of small and medium-sized enterprises (SMEs) increased by 56 units and continue to constitute the overwhelming majority of bankruptcies (61,025) recorded by the Banque de France.

As for medium-sized enterprises (ETI) and large companies, insolvencies were slightly lower in June (56) than in May (67).

Author: ML with AFP
Source: BFM TV

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