According to the Banque de France, the number of business failures at the end of October was 64,650, compared to 64,191 at the end of September. A slight increase which is part of a sharp increase over one year (21%), and is explained in particular by the post-Covid catch-up.
The number of business failures accumulated over twelve months in France increased slightly at the end of October compared to the end of September, to 64,650 compared to 64,191, the Banque de France said on Friday.
Compared to the twelve months ending at the end of October 2023, the number of failures is up significantly, by 21%, after +24% at the end of September on an annual basis.
A “catch-up after the sharp slowdown in insolvencies during the Covid period” according to the Banque de France
This is a “catch-up after the sharp slowdown in insolvencies during the Covid period” in 2020 and 2021, according to the Banque de France. There were very few failures during the health crisis and immediately after, due to the significant aid received by businesses.
An increase of 8.9% compared to the 2010-2019 average
However, compared to the average for the 2010-2019 period, insolvencies were up 8.9% at the end of October.
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The sectors most affected by insolvencies are real estate activities (+40.4% over one year), transport and warehousing (+40.0%) and financial and insurance activities (+30.9% ). The least affected are industry (+9.2%) and education, health, social action and household services (+9.2%).
Small businesses most affected
Small businesses are affected in the vast majority. Insolvencies of small and medium-sized enterprises (SMEs) jumped 21% year-on-year to 64,587, mainly microenterprises or companies of indeterminate size (59,318). Those of mid-sized companies (ETI) and large companies increased by 8.6%, to 63 failures.
The Banque de France also underlines that “credit mediation has not recorded an increase in the number of referrals over the recent period”.
Last October 15, the Altares firm in a study intended to be reassuring. If we look over the long term, the number of company failures between 2020 and 2023 (160,784 companies according to Altares data) is lower than the period 2016-2019 (219,648 companies).
Louise de Maisonneuve with AFP
