MNI BRIEF: German Insolvencies Hit Record High In July - IWH

MNI (LONDON) - The number of German firms going bust rose sharply to reach record levels in July, according to research by the Leibniz Institute for Economic Research Halle (IWH), with manufacturers the worst affected.

The number of partnerships and companies declared insolvent rose 20% from June to July to 1.406, the highest level in close to decade, and was 37% above the same time last year, IWH’s Insolvency Trend found.  Industrial companies fared worst, with 145 going out of business last month compared with 100 in June - the highest number recorded since IWH began recording sectoral information in 2020. 

A little under 10,000 jobs were affected at the largest 10% of companies reporting insolvency in July, roughly on par with June, the same time last year, and the 2016-19 average - suggesting there were fewer major insolvencies. However the states of Berlin, Hesse and North Rhine-Westphalia were “significantly” more affected than usual.