Healthcare in particular seems to be recovering after difficult start of the year
Rotterdam, May 12 2022 –Never since the beginning of the corona crisis have fewer companies gone bankrupt than in April 2022. This is evident from the latest figures from business data specialist Altares Dun & Bradstreet. Indeed, only 106 companies went bankrupt last month, 79 fewer than in March 2022.
The total number of bankruptcies is artificially low. Also in April 2021, relatively few companies went out of business due to the Covid-19 financial government support: 141. Before the government came up with the support packages, these were far more companies: 363 in 2020 and 366 in 2019. The decline in bankruptcies breaks an upward trend: it is the first time this year that the number is lower, compared to a month earlier. out of business: 141. Vóór de overheid met de steunpakketten kwam waren dit veel méér bedrijven: 363 in 2020 en 366 in 2019. De daling van het aantal faillissementen breekt een opwaartse trend: het is voor het eerst dit jaar dat het aantal lager ligt, dan een maand eerder.
Trade is leading, as it has consistently done
As always, most bankruptcies fell in the trade sector. In April 2022, 26 trading companies (think retailers and wholesalers) went bankrupt, following 34 bankruptcies in March. Trade is one of the largest sectors in the Netherlands. In 2021, the industry had nearly 300 bankruptcies - more than any other sector.
Zooming in on construction
Construction also has historically seen more bankruptcies than any other sector. In April 2022, there were only 21, after 32 in March. There is no one subcategory that seems to be more at risk than others. For example, four carpentry and nonresidential construction companies went out of business, as did three masons and two painters/glaziers.
Health care industry bounces back
In percentage terms, the health care sector rebounded the most. After eighteen and twenty bankruptcies in February and March, there were only four in April. This brings the sector back to its "old" level of early 2021, whereas the sector never had fewer than seven since last November. There is also good news for the culture sector: no companies fell over there for the first time since August last year.
Joris Peeters, Chief Data Scientist at Altares Dun & Bradstreet: "The low figures feel like the proverbial calm before the storm. Historically, you see that when GDP growth is below two percent, the number of bankruptcies rises. High commodity prices, the war and Ukraine, lockdowns in China and other macroeconomic developments are going to limit the growth of the economy. That, plus the cessation of government support, is probably going to cause an increase in bankruptcies. The question is whether that increase will start as early as May."