The number of UK business failures fell to its lowest level in August since September 2008, according to information services provider Experian.

The index reveals that 0.09% of UK businesses failed during August this year, up on the 0.08% recorded in August 2008 but significantly lower than July (0.11%), and the lowest rate of 2009.

The number of business insolvencies during August 2009 grew by 11.3%, compared to August 2008. However, the total number of insolvencies fell by 23% on July, and with a total of 1,796 insolvencies in August, this was also the lowest number of monthly failures so far in 2009.

Rolf Hickman, managing director of pH, an Experian company, says: “This latest data is encouraging. However, it is also important to remember that although the total number of insolvencies is close to the total number in the last recession, the insolvency rate is nowhere near as high. The underlying business population has also been growing at an increasing pace, so this needs to be taken into account to gain a realistic picture of insolvencies in the UK and the extent of any impact on the UK economy rather than simply looking at raw insolvency statistics. 

“Although it is too early to tell whether this is an indication of a more positive outlook, one thing is for sure: businesses are distinctly aware of the current environment and the need to be cautious in any business dealings. 

“We have seen a significant increase in businesses monitoring the health of suppliers, customers and partners, as well as themselves, in order to ensure they do not suffer from the impact of another business becoming insolvent.”