Financial strength core of UK business improving

According to recent reports, the UK financial strength core for business is doing better than one might expect.  The financial strength core measures a business’s projected possibility of lasting, without insolvency, for the next twelve months.

The recently released pole shows a rise in the financial strength core of UK business.  The number of insolvencies in October 2010 was down when compared to those failures in 2009.  The overall trend depicts upward movement in financial core strength since May of 2010.

Wales, for one, saw a slight increase in its financial core strength.  While all the nations and regions of the UK witnessed a drop in insolvency from 2009 to 2010, Scotland had the best performances with the lowest overall rate of business failures.

The North East and Yorkshire saw the best rate of improvement between 2009 and 2010.  The Greater London region was once again the area with the weakest financial core strength.  Large companies had the biggest improvement in insolvency rates between the two years, while mid-size businesses experienced the largest increase.

Most of these statistics sound good and seem to be indicative of stronger UK business positions than one might have thought.  Experts warn, however, that statistics are subject to interpretation and may indicate that businesses are hoarding cash reserves because of low confidence.