More bankruptcies in Q3 than a year ago in Austria
Almost a fifth more bankruptcies than a year earlier; less intentions to set up an enterprise
In the third quarter of 2024, the number of bankruptcies increased by 18.1% to 1 532 compared to the same period of the previous year, according to preliminary figures from Statistics Austria. Compared to the previous quarter, April to June 2024, bankruptcies decreased by 3.7%. The number of registrations of legal units fell by 6.8% year-on-year to 14 254 in the period from July to September 2024 “Between July and September 2024, there were 1 532 bankruptcies in Austria, which is 3.7% fewer than in the previous quarter, but compared to the third quarter of the previous year, the number of bankruptcies is still up by almost a fifth. At the same time, intentions to set up an enterprise continued to decline: In the third quarter, there were around 7% fewer registrations than a year earlier,” says Statistics Austria Director General Tobias Thomas.
Highest number of bankruptcies in services sector, wholesale and retail trade and construction
The highest number of insolvencies in the third quarter of 2024 was recorded in financial services/other services (438), wholesale and retail trade (244), construction (227) and accommodation and food service activities (200), although the number of bankruptcies generally depends heavily on the number of active enterprises in the individual economic branch. Comparatively few bankruptcies were recorded in the sectors information and communication (75) and manufacturing (94, see table 1).
Most registrations in the services sector
In the third quarter of 2024, 14 254 registrations of legal units were recorded, around 7% fewer than in the third quarter of 2023 (15 300). In contrast to an enterprise birth, the registration of a legal unit is part of an administrative procedure and is to be understood as a declaration of intent. It does not necessarily mean that an economic activity in the sense of turnover or employment will actually be taken up. However, registrations are an important early indicator for measuring the economic situation. The highest number of registrations in the third quarter of 2024 was recorded in financial services/other services (4 376), personal services (3 523) and wholesale and retail trade (2 559). There were rather few registrations in transportation and storage (531), construction (801) and manufacturing
Source: Statistics Austria
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