October ends with 5,509 bankruptcies, up 18% from October 2021

October ends with 5,509 bankruptcies, up 18% from October 2021

According to the Axesor business radar for insolvencies and company formations and liquidations, the results after the end of October confirm the negative impact that inflation and the fall in consumption are having on our business fabric. By October, 5,509 bankruptcies had been fileda figure 18.12% higher than in the same period last year.

By sectors and absolutely Trade concentrates the biggest bankruptcy. Specifically, 1,212 procedures were registered, which corresponds to growth of 33.92%. This is followed by activities in the construction sector with 828 tenders and an increase of 17.61%. Together they accounted for more than 37% of the bankruptcies of the period. Another key sector is manufacturing, which ranks third with 646 tenders, up 25.19%.

The sector of The hotel industry continues to improve its figures compared to the first ten months of the 2021 financial year. However, after rising almost 31% in the month of October, the rate is almost five points lower than before September. In total, A total of 586 bankruptcy proceedings were filed in bars, restaurants and hotels16.41% less.

In relative terms, agriculture shows an increase of 97.30%, a number that is very high but moderate compared to the previous months when it exceeded 130%. Transport and storage follow with a bankruptcy increase of 39.67%.

Madrid and Catalonia, the two municipalities with the most bankruptcies

A unique regional Madrid up 20.53% and Catalonia up 8.59%, are the two municipalities that accumulate the most bankruptcies with 1,280 and 1,277 respectively. Together they concentrate 46.4% of the total. On the other hand, it is particularly significant that the number of bankruptcies increased in all regions, with the exception of Castilla y León (-30.67%); Balearic Islands (-8.82%); and the Canary Islands (-2.90%).

Regarding the solutionsin the first ten months of this year 2022, 54,331 were registered, which translates to a Year-over-year increase of 7.71%, with trade (9,900), construction (7,641) and professional, scientific and technical activities (5,714) being the sectors with the highest incidence. However, along with administrative activities and manufacturing, the latter is one of the four sectors in which fewer companies were dissolved than in the previous year.

By region, Madrid registered the most, 15,254 (+14.80%), almost doubling Catalonia with 7,783 (+6.76%). Andalusia follows in third place, where the number of resolutions was 6,713 with an increase of 11.49%.

The decline of entrepreneurship is pronounced

When it comes to business start-ups, the data are deteriorating compared to the previous months. According to data extracted by Axesor’s Office of Economic Studies, 82,844 commercial companies were formed, up from 85,453 in the first ten months of fiscal year 2021. That means 3.05% less than in the previous year. In addition, company formation has been completed in twelve of the twenty sectors into which Axesor divides its operations.

Extractive industries at 29.03% down, agricultural activities at -20.63% and electricity, gas, steam and air conditioning activities at -20.22% the sectors that saw the largest declines compared to the previous year.

Despite the 10.41% and 0.62% declines, Trade and construction are the industries where more companies have been established, 15,891 and 11,129, respectively. In third place are freelance, scientific and technical activities with a total of 8,999. In addition, the initial capital paid out by companies in this sector increased by 195.61% to EUR 732.32 million. Both data confirm the trend reversal in the composition of the company structure towards sectors with a higher need for qualifications.

In case of In gastronomy, the pace of start-ups is slowing down compared to the previous months. Despite this, it has grown by 8.86% and has reached 8,648 new traders.

By regions, The Autonomous Community of Madrid retains corporate governance with 19,154 constitutions. All this despite the 4.52% drop compared to the previous year. Catalonia follows with 16,108 constitutions and a decrease of 0.81% and Andalusia with 14,128 and a decrease of 2.42%. As in the past month, entrepreneurship has fallen in all Autonomous Communities except the Balearic and Canary Islands.

On the other hand, the volume of initial capital subscribed by companies ended the first ten months of 2022 down 6.70%. Thus, 3,884.37 million euros were paid out. Although the initial investment was 26.61% lower, Financial activities exceeded 1,000 million euros (1,074.7 million euros) capital and lead the ranking by volume. Before the real estate activities with 754.1 million euros and a minus of 15.66%.

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