Insolvencies in Germany Rise by 10.7% in August

BERLIN (Reuters) – Germany saw a 10.7% increase in insolvencies in August compared to a year earlier, the federal statistics office reported on Wednesday. This adds to data indicating persistent difficulties for companies in Europe’s largest economy.

The growth rate in insolvencies has been in double-digit territory since June 2023, with the only exception being June 2024, when the year-on-year increase eased briefly to 6.3%, according to the office.

In the first half of 2024, German courts reported 10,702 corporate insolvencies, which marks a 24.9% increase year on year, based on final data.

The transport and storage sector accounted for most insolvencies during this period, followed by the construction industry, business services such as temporary employment agencies, and hospitality.