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Swedish business sector has never had such a dark quarter

Friday, 05 April 2013
Sweden has never had so many business bankruptcies in the first quarter like this year. Not since 2009 as the spat of bankruptcies explosion is worrying to both observers and market analysts.

A further cause for concern is that new business start-ups is at its lowest in three years and future developments are difficult to predict given the uncertain economic climate.

According to latest report about the performance of the Swedish business sector, the construction industry in particular, was heavily hit during the first quarter with many bankruptcies. Overall, the number of bankruptcies in the country was up 1,832 from January to March, which is 12 percent more than the same time last year. In the construction industry, however, the increase was 34 percent.

According to business and credit Information Company, UC, which produce monthly statistics about that development, the headwinds for the construction sector particularly is evident even in the Skåne region. There the total amount of bankruptcies increased by 26 percent compared to last year.

In the Stockholm and Västra Götaland region there seem to have been a calmer climate, each with 9 percent more bankruptcies.
"Many industries are still seeing a tough environment. At a time when the recession is clinging, companies with small margins in highly competitive industries face major problems," says Roland Sigbladh, Marketing Manager at UC to the press release.

In addition to the construction industry the retail sector, private services and transport sectors that have a tough time with the increased number of bankruptcies.

Against the tide, however, the hotel and restaurant industry saw bankruptcies fall across the country 24 percent during the first three months.
by Scancomark.com Team

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