Business deaths have begun to decline from a peak position in late 2021 and early 2022 – the latent effect of the pandemic on business viability has potentially now passed. However, businesses continue to operate in challenging circumstances with economic pressures weighing heavily.
Regional variation is significant, as well as industry sector. While some business type deaths are falling, drawing down the overall number, some continue to struggle and death counts are still climbing. This is evident in B2B sectors that have been historically risky for energy and water suppliers.
However, a corresponding reduction in the number of business births (14% down on 2022 levels) suggests the overall dynamics of the marketplace have not yet recovered, and confidence in launching new businesses remains low.
Business sectors are still experiencing the impact of the pandemic, combined with current economic conditions differently, with some sectors now moving out of peak attrition and falling below late 2019 levels. These typically include support and professional services, though transportation and storage, which felt a strong impact in late 21, is also returning to previous levels. Conversely, deaths in historically risky segments continue to grow, with only minor signs that a plateau may have been reached – significantly these include food services and entertainment.
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