Business bankruptcies in EU increase 2.7 percent in Q3
Date
11/17/2024 2:59:25 AM
(MENAFN) Business bankruptcies in the European Union rose by 2.7 percent quarter-on-quarter during the third quarter of 2024, according to data released by Eurostat. This increase in bankruptcies spanned across several sectors, with the transport industry experiencing the most significant rise. The number of transport companies declaring bankruptcy jumped by 28.8 percent, marking the steepest surge among all sectors. This was followed by the information and communication sector, where bankruptcies increased by 15.3 percent, and the accommodation and food services industry, which saw a 9.8 percent rise in business closures.
In contrast, some industries saw a decrease in the number of bankruptcies. Notably, the education and social activities sector experienced a 16.3 percent decline in bankruptcies, while the financial sector also saw a decrease, with bankruptcies dropping by 6.8 percent. These variations reflect the diverse economic challenges and resilience within different parts of the EU economy during this period.
Regarding business registrations, the EU saw a quarterly increase of 2.2 percent in new business registrations in the third quarter. The transport sector led the way with a 3.9 percent rise in new registrations, followed closely by construction, which saw a 3.7 percent increase. The financial sector also experienced a growth in registrations, with a 2.7 percent rise. These sectors are showing positive signs of growth and entrepreneurial activity, even amidst the broader economic pressures.
However, not all sectors experienced growth in business registrations. The communication sector recorded a slight decline of 0.8 percent, followed by a 0.5 percent decrease in the industrial sector, and a 0.2 percent drop in accommodation and food services. These sectors may be facing particular challenges or adjustments in response to changing market conditions and consumer behaviors in the third quarter of 2024.
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