THE North East saw a substantial improvement in the rate of business failings last month.
New figures from information specialist Experian showed the rate of failures dropped from 0.22 per cent of the region’s business population in March 2011 to 0.14 per cent last month, the biggest year-on-year improvement of any region.
The health of the business community in the North East – measured using an average of financial strength scores – rose from 81.71 in March 2011 to 84.50 in March 2012.
Only businesses in the East Midlands recorded a bigger average improvement in financial strength.
Max Firth, UK managing director for Experian’s Business Information Services division, said: “March was a positive month for businesses in the North East and an improving financial strength score is encouraging.
“However, the North East does still have the second highest insolvency rate in the UK, so it is vital businesses fully understand the financial risks associated with firms they deal with.”