During July, the number of bankruptcies increased by a total of 12 percent across the country, compared to last year. This is shown by new figures from the business and credit information company Upplysningscentralen (UC).
The previous month, the number of bankruptcies decreased, for the first time in a long time, which UC believed would continue.
We had hoped for a turnaround, but it didn't happen, says Petter Alvsten, credit market analyst at UC.
The Krona Gets the Blame
The reason for the increase, he believes, is partly due to the fact that the Swedish krona has fallen.
The Swedish krona has not developed well over the past month, and that makes it tough for companies that buy in.
But the construction industry has also continued to struggle, since no major investments have been made there recently.
In the construction industry, the number of bankruptcies increased by 14 percent. But the largest increase was in the real estate industry, where bankruptcies increased by over 50 percent in July, compared to the same period last year.
They have tried to work through higher interest rates, but it didn't work out for all real estate companies, unfortunately.
Many car dealers have also gone bankrupt – in the motor industry, bankruptcies increased by over 30 percent, compared to last year.
People simply aren't buying cars, in worse economic times.
In retail, there was also a small increase, but according to Petter Alvsten, the industry has begun to stabilize.
Believes in a Brighter Future
In June, the number of bankruptcies decreased the most in the hotel and restaurant industry – but now it has turned. In July, bankruptcies instead increased by eleven percent. Something that is unusual, according to Petter Alvsten.
It's usually a very strong period for the restaurant industry. But they have also had a tough time over a longer period.
But it looks brighter ahead, according to Petter Alvsten.
During the second half of the year, we won't have the same increase in bankruptcies. And hopefully, it will turn around by the end of the year, he estimates.
There are also industries where bankruptcies are decreasing. The largest decrease was in wholesale trade – i.e., trade with large volumes of goods between companies. There, bankruptcies decreased by 14 percent.
Bankruptcies also decreased among service companies and information and communication.
The number of new startups increased slightly during July, but is still at almost the same level as last year.
