Moderate economic slowdown

Bisnode now presents an aggregate report of bankruptcies and foundations for the third quarter of 2012, indicating continued economic slowdown for the region. Adjusted for seasonal factors, the trend of decreased foundations and increased bankruptcies remains. Businesses in the transport and communication industries continue to suffer due to fierce competition and increased fuel prices.

Foundations in the region have a year on year increase of 0.2% and a decrease of -6.3% from Q2. Bankruptcies have a year on year increase of 5.4% and a decrease of -8.7% for the third quarter.

“Our analysis of the foundation data shows that it is skewed by government legislation in Austria which caused a sharp rise in sole proprietors. Hence, the slight year on year increase is actually a decrease, indicative of a contraction in the economy. The apparent decrease in bankruptcies during the third quarter is not a change of the trend, but is rather due to seasonal factors. Actually, the drop is lower than during last year’s holiday season,” says Arvid Brackrogge, Director Bisnode Scoring Group.

Transport, communication and utilities suffer

Businesses that suffer the most across the region are found in the transport, communication and utilities industries. The data shows a steady but comparatively high level of bankruptcies and a low level of foundations. There is a year on year decrease of -26.3% in foundations and 7.4% increase in bankruptcies.

“These industries are at the highest risk due to low margins and fierce competition. With little or no financial buffers, these businesses face a disadvantageous position as the economy slows down. There is a sharp decrease in foundations in these fields even in countries that are doing rather well on an aggregate level, such as Belgium, Denmark, Norway and Germany,” says Neil Scammells, Data Analyst, Bisnode Scoring Group.

Nordics waver and DACH remains stable

In the region, the DACH countries remain the most stable. Compared to Central Europe the Nordics are in a better position but is the region that has the most dramatic negative development over the past quarter.

“Germany is at the top of the list for foundations and close to the bottom for bankruptcies and the numbers look good even in comparison to the third quarter of last year. It’s too soon to say if this is the beginning of a changing trend, but we will have a more definitive answer in the report for the fourth quarter.” says Arvid Brackrogge,

The full report is available at:


Arvid Brackrogge, Director Bisnode Scoring Group
Phone: +49 151 58029554


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