September 2019 brought another increase in bankruptcy
The latest KUKE report shows that the number of declared bankruptcies of entrepreneurs in September 2019 is 48.5% higher than in September 2018.
The report shows that the industrial bankruptcy index decreased from 0.67% to 0.66% in August 2019, while a year earlier it was 0.84%. In turn, the restructuring index increased from 0.54% to 0.60%.
The authors of the report also point to a worrying increase in insolvencies in the furniture industry. During the year, from 0.15% to 1.22% in bankruptcy and from 0.75% to 0.92% in restructuring, respectively. The commentary to the report shows that “the furniture industry is highly fragmented and struggles with a lack of properly qualified employees, while at the same time maintaining wage pressure”.
At the same time, the data in the KUKE report shows that the bankruptcy index, compared to August 2019, also slightly increased in the construction sector from 1.67% to 1.73%. The restructuring index increased from 0.65% to 0.67%. In the authors’ opinion, it results from the fact that wages are rising and it is difficult to find employees.