In July, 200 active companies in Denmark went bankrupt. This is according to figures from Statistics Denmark, which were published on Thursday. This is an increase of 11.8 percent from June, when there were 178 bankruptcies - the lowest number in 40 months.
The figures are adjusted for seasonal fluctuations and apply to active companies that have employees or a turnover of at least one million kroner. Although several companies went bankrupt in July, bankruptcies are still at a slightly lower level than the average for the past 15 years, writes Allan Sørensen, chief economist at the Confederation of Danish Industry, in a comment.
Among other things, falling interest rates, low inflation and increasing employment are helping to keep bankruptcies down, explains the economist.
He expects the number of bankruptcies to be stable in the coming months. But it is difficult to assess what it will look like in the longer term.
- There is great uncertainty about the economic development, and this is causing many customers to hold off on their next order. If customers do not arrive for too long, it could push some companies closer to bankruptcy, writes Allan Sørensen.
Tariff policy from the US creates uncertainties
Arbejdernes Landsbank also points out that the business community is in the middle of an uncertain period.
This is particularly due to the tariff policy of the US President, Donald Trump.
- Times right now are more uncertain than usual with the pending consequences of higher tariffs in the US. However, we do not expect that this will have an effect on bankruptcies in the short term.
- In the long term, it may affect certain companies with a high export focus towards the USA, but we do not currently expect that it will lift the general bankruptcy picture as a whole, writes Chief Economist Jeppe Juul Borre in a comment.
While the number of bankruptcies increased in July, it has resulted in fewer job losses than in June. 1,107 jobs disappeared with bankruptcies in July, which is 3.3 percent fewer than in June.
/ritzau/
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