Fewer firms going bust, report finds

The number of business insolvencies has fallen for a second month in succession, according to new research.

Information services company Experian said 1,560 companies failed in June - a rate of 0.07% - compared to 1,675 in the same period last year (0.08%).

In May, the rate was down from 0.09% in 2012 to 0.08% this year.

Eight out of 11 regions saw an improvement in June, though London, the South West and the East Midlands saw slightly more insolvencies compared to 2012.

Looking at insolvencies by company size, small to medium firms, which suffered most during the recession, performed well, Experian said.

Max Firth, managing director of Experian business information services, said: "This is good news overall - we've already seen several months of low but level insolvency rates and the fact that they have come down further indicates that firms are operating with more confidence than in recent years.

"However, as businesses start to think about growth and companies start to restock and rehire, the insolvency rate could well go up as cash flow becomes an issue."