According to Experian, the credit referencing firm, business insolvencies dropped to their lowest level January for more than two years.
The study reports that just over 1,400 companies went into insolvency last month, which is 24% lower than January the previous year.
In addition to this the Insolvency Service reported a drop of 1.7% in business organisations going bust in the fourth quarter of 2009 when compared with the three months prior to this.
Experian’s Managing Director, Rolf Hickman, commented:
“It’s encouraging to see so few firms become insolvent in a single month. While it is too early to predict whether we are fully out of the woods, this does hint at an improvement in the health of UK businesses.”
Despite these optimistic figures, some insolvency companies have warned that the drop in business liquidations could be the “calm before the storm”, and more companies are expected to become insolvent later in 2010.