While the number of corporate failures in the UK declined in the first six months of 2007, the leisure industry, retailers and the agricultural sector have seen massive jumps in the numbers of businesses failing, particularly in the period April to June, Experian, the information solutions company.

A total of 329 companies in the hotels and leisure sector failed in the first half, an increase of 16.3% on 2006, 568 retailers (up 4% – but up 21.1% to 287 between April and June) and 36 agricultural businesses (up 56% in the first six months but trebling to 25 in April to June from eight the year before).

Overall, the number of businesses becoming insolvent across the UK has fallen by 6.9% (to 8,930) during the first six months of 2007, with 662 fewer failures recorded than in the same period in 2006.

During the second quarter, April-June 2007, there has been a fall of 4.9%, with 230 fewer failures recorded, compared to the second quarter of 2006.

Jo Howard, marketing director for Experian’s business information division, said: “This year started well, kicking off in quarter one with the biggest fall in corporate insolvencies for four years. And, whilst it’s great that the period April – June has seen the year-on-year trend continue, there was still a small increase in the number of businesses failing, compared with the first quarter of 2007.

“Particularly worrying is the level of failures among the leisure and retail sectors as these sectors tend to be barometers of the financial health of the nation. It could reflect a consequence of the general slowdown in consumer spending as the five interest rate increases have begun to bite, which means that we could see more failures in these sectors in the coming months.”