However, Graydon UK, the credit reference agency which compiled the results, warned that some sectors are still facing a grave risk.
The study showed that the number of companies going bust in the second quarter of 2012 will increase by just 1.4%, compared to the same time last year. If this proves to be the case, corporate insolvencies will be lower by 4.8%, compared to the same time in 2010 and a whopping 11.6% less than 2009.
These types of figures could be seen as a cause for celebration, an indication that the economic slide has finally been halted, which should be the precursor for growth and revival. But experts from Graydon warned that an overall improvement does not tell the whole story.
The group has told firms to continue to be canny with their finances and not assume that a flattening off of corporate failures means that the risk of insolvency has passed, adding that some sectors should be worried more than others.
Graydon has warned that the reversal of the downward trend should not draw businesses into a ‘false sense of security,’ and said that some industries were still experiencing a worsening in survival rates, with property firms, retailers and construction companies at the most risk.
The credit reference agency has estimated that the insolvency rates for constructions firms will jump by 2.1% in the second quarter, whilst an additional 2.5% will be added to failure rates for retailers. But the worst news by far is for the property sector, where Graydon believes insolvency rates will climb by as much as 5.3%.