2008 to be "demanding credit phase"

News Article - 08 February 2008
Category:

Corporate insolvency levels were down in 2008 but this upturn could be only temporary, warns Deloitte.

The firm reports that insolvencies reduced by seven per cent last year, but states that UK business performance is to experience a "more demanding credit phase".

"Until recently there was a relatively positive environment with insolvency appointments in decline and businesses worked together with lenders to restructure and refinance, without an insolvency event occurring," explained Lee Manning, reorganisation services partner at the firm.

Deloitte claims that the economic slowdown will have a gradual effect on different industries but that insolvencies are set to remain a high risk during 2008.

The firm states that it will continue to monitor business progress and its next analysis will provide more insight into business health.

Deloitte's warnings echo those of PricewaterhouseCoopers, who recently advised companies to be aware of the emerging effects of the credit crunch.

Mike Jervis, partner in the firm's Business Recovery practice, explained that lowered confidence in the industry would lead to less risks being taken.

Article keywords:

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »