January brought fewer new companies and more insolvencies – Jornal de Negócios – Portugal

The creation of new companies fell 10.1% in January, while the number of insolvent companies increased by 15.8% over the same month in 2015, continuing the trend started in June last year, according to IGNIOS.

data contained in the “Centre of Business, Bankruptcy, credit Losers and Constitutions” of IGNIOS, company integrated and customized risk management solutions, and show that “the start of the year, the business dynamics in Portugal presented a less positive behavior the previous two years. “

as for insolvency in January this year 689 companies were registered as insolvent in Portugal, corresponding to an increase of 15.8% over the same month of 2015.

According to the study, despite the resumption of the upward trend, insolvencies in January this year remain, in absolute terms, below the same months of the year 2013 and 2014, when they were hit, respectively peaks, 742 and 737 insolvencies.

“it’s too early to we can determine if this is a trend that will gain body in the course of the year, but it is certain that the route of ascent has already been evident since the middle of last year. The behavior of the economy and especially of domestic demand will be decisive for the evolution of this indicator, “says the CEO of the company, Antonio Monteiro, said in the statement.

According to the analysis,” the increase of insolvencies was influenced mainly by the growth of 56.2% in the number of companies whose insolvency process was completed “(217 in January 2015 and 339 in January 2016).

it also explains that even the down 20.4% in insolvencies required by creditors (164 companies), “was not enough to offset” that increase.

it also adds that in the ongoing insolvency (which combine the required by lenders and presented by the company), also the companies requesting insolvency grew 7.3% in January 2016 (for the 177).

Santarem, Coimbra, Viseu and Setúbal stood out the negative, with increases between 50% and 116%, as well as the Port district recorded one of the most significant increases in insolvencies (19.8% to 139 companies).

the district of Lisbon fell 4.7% in this indicator , keeping, however, as the district with greater weight nationally (20.5%).

Since the positive, we highlight Braga and Faro.

In a sectoral analysis, the trades to retail, wholesale and vehicles continue to excel, both in terms of increased insolvency, both in terms of its weight in total, as well as the restoration, while construction continues to lead insolvencies.

with regard to the establishment of companies, also there has been a 10 to fall 1%, to 4,077.

at the sectoral level, the only relevant increase YoY was in the area and hotels and restaurants, whose share in total increased from 10.8% to 12.1%, says analysis, adding that yet the number of constitutions in this sector grew by only 0.2%.

The districts of Lisbon, Porto, Braga, Aveiro and Setúbal remain the most dynamic in the formation of companies.

The information contained in IGNIOS database includes all constitutions of companies published by the Institute of Registration and Notary / Ministry of Justice and all insolvency actions also publicized by the Ministry of Justice, Citius portal.