SCOTTISH corporate failures in the opening three months of 2019 were up sharply on the preceding quarter and on the same period of last year, official figures show, as Brexit uncertainty and weak consumer confidence weighed.
Figures published yesterday by the Accountant in Bankruptcy show the number of corporate insolvencies in Scotland in the January to March quarter was, at 280, up by 8.1 per cent on the same period of last year. And the number of company failures in the opening three months of 2019 was up by 34% on the preceding three months.
Duncan Swift, vice-president of insolvency trade body R3, said: “The jump in the number of corporate insolvencies in Scotland in the last quarter continues a longstanding trend, and indicates that many companies are finding market conditions tough.”
He noted that economic growth in Scotland of 0.3% quarter-on-quarter in the final three months of last year had been ahead of UK-wide expansion of 0.2% but was nevertheless still “relatively sluggish”.
Mr Swift highlighted the dampening impact of Brexit uncertainty on business investment. He flagged weakness of consumer confidence throughout 2018, and a “further notable drop” in the first quarter of 2019.
He said: “Brexit is still making an impact on Scottish businesses here and now, as they put off investment in new equipment or processes, or build up stockpiles of essential supplies to insulate themselves from possible shocks in the future.
“With uncertainty making business decisions trickier than usual, it has been simpler for Scottish firms to take on extra staff, rather than to spend on machinery or software.”
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