The upward trend in insolvency numbers remains unbroken, although the momentum decreased slightly in May. Early indicators collected by the Leibniz Institute for Economic Research Halle (IWH) suggest a decline in numbers for the coming months, but credit rating agency Crif anticipates a higher default rate compared to recent figures. The payment discipline of German companies, a crucial indicator for potential defaults and a precursor to insolvencies, has notably deteriorated in the first five months of this year.
According to the Federal Statistical Office (Destatis), the number of applications for normal business insolvencies rose by 25.9% in May compared to the same month last year. In April, the increase was 28.5%, following a …
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