In the second quarter of 2024, the European Union witnessed a notable increase in company bankruptcies, with a 3.1% rise compared to the first quarter of the year. This data, released by Eurostat, highlights the ongoing economic challenges faced by businesses across the continent.
The construction sector experienced the most significant surge in bankruptcies, with a 3.8% increase over the three-month period. Financial activities also saw a rise in insolvencies, climbing by 2.6%, while the trade sector reported a 2.4% increase. The industrial sector was not spared, recording a 1.6% uptick in bankruptcies.
Conversely, some sectors showed resilience. The information and communication sector saw a 4.8% decrease in bankruptcies, marking the most substantial decline. The transport sector followed with a 1.6% reduction, while the accommodation and food services sector experienced a 1.1% drop. Additionally, the education and social activities sector saw a 1% decrease in bankruptcies.
Despite the rise in bankruptcies, the number of new business registrations in the EU fell by 2.1% in the second quarter compared to the first quarter of 2024. This decline in new enterprises suggests a cautious approach among entrepreneurs amid the uncertain economic climate.