Status: 11/11/2022 12:34 p.m
The number of company bankruptcies has increased significantly. The preliminary data from the Federal Statistical Office also indicate a further increase. Small businesses and the self-employed are particularly unsettled.
Against the background of the energy crisis and the impending recession, there are significantly more company bankruptcies in Germany. The number of regular insolvencies applied for by companies rose by 18.4 percent in October compared to the previous month, as the Federal Statistical Office announced today. In September there was still a decline of 20.6 percent.
Most processes in construction and trade
However, the number of regular insolvencies applied for is part of the preliminary data, which does not yet have the methodical maturity and reliability of official statistics. Nevertheless, as an early indicator, it gives indications of the development of company bankruptcies according to the official insolvency statistics, the results of which are only available around two months later.
According to the final results, the German district courts reported 1,147 corporate insolvencies in August, 11.5 percent more than a year ago. In July, the number of company bankruptcies fell by 3.8 percent compared to the same month last year. The courts estimated the probable claims of the creditors from the insolvencies reported in August at around 0.8 billion euros. In August 2021 they were around 8.2 billion euros, as more economically important companies went bankrupt than in August of this year.
Most bankruptcies were in the construction industry with 198 cases – an increase of 4.2 percent compared to the same month last year. The industry is suffering from delivery bottlenecks, rising prices and, due to the crisis, more and more project cancellations. In trade (including maintenance and repair of motor vehicles) there were 167 procedures, 18 percent more than a year ago.
Great uncertainty among micro-enterprises and the self-employed
Experts expect more company bankruptcies due to the economic slowdown. They expect a trend reversal in the insolvency figures, which had also fallen due to legal exemptions in the Corona crisis. The energy crisis, high inflation and a cooling global economy are currently affecting the economy in Germany. In their annual report presented this week, the economic experts expect a recession for 2023.
This is also reflected in the situation of micro-enterprises and the self-employed. Their mood dropped significantly again in October, while worries about their existence are growing at the same time, as the Munich-based ifo Institute reported today as part of its monthly survey. The corresponding business climate index then fell to minus 25.0 points after minus 20.9 points in September – a negative record.
“The economic slowdown is causing particular problems for the self-employed and micro-enterprises,” said Klaus Wohlrabe, head of the ifo surveys. “The existential worries are increasing noticeably.” 19.5 percent of the companies in this area currently see their economic survival threatened. This is significantly more than the 7.5 percent in the economy as a whole. According to the ifo Institute, the outlook for micro-enterprises is bleak, especially in retail and the construction industry. “The uncertainty among the self-employed and micro-enterprises has once again surpassed the record from the previous month.”