Desk Report: According to Jornal Económico, between the beginning of the year and the end of May, 690 fewer companies were created and the annual decline occurred mainly in the first quarter.

The data collated by Informa D&B states that 23,488 new companies were created by the end of May, 2.9% less than in the same period last year.

From a geographical point of view, the Lisbon Metropolitan Area leads the declines in this indicator with a drop of 967 company formations (-10%), followed by Alentejo and Algarve.

The North region leads the rise with another 191 new companies (+2.7%) and the Center region and the Autonomous Regions also register an increase in the creation of companies until May 31st.

The decline in company creation occurs in most sectors, particularly in Transport (-24% or -713 company formations), a trend that has been observed since December last year, especially in the occasional transport of passengers in light vehicles.

Also, the sectors of real estate activities (-7.0% or -159 company incorporations), wholesalers (-11% or -114 company incorporations) and accommodation and catering (-4.2% or -101 company incorporations ) recorded significant declines in business creation during this period.

Among the four sectors in which the number of company formations increased, construction stands out, with 225 more new companies than in the same period last year (+8.4%), reveals the barometer.

Informa D&B also provides data on insolvency processes and that of the textile and fashion industry appears at the top of the list.

By the end of May, 914 companies had initiated insolvency proceedings, 12% more (+101 insolvency proceedings) than in the same period last year, thus maintaining the upward trend seen last year.

“This increase is mainly supported by the Industries sector (+81%; or +125 insolvency processes), the sector with the highest number of insolvencies”, says the barometer.

The increase in the number of insolvency processes in the industrial sector was largely concentrated in textile and fashion companies (+163% or +109 insolvency processes), particularly in footwear manufacturing activities (+442%; or +53 insolvency processes). insolvency) and production of other outerwear in series (+113%; or +35 insolvency processes), located in the North region, especially in the districts of Porto and Braga.

In addition to industries, retail, the second sector with the most insolvencies, also recorded a significant increase (+20%, +22 insolvency proceedings.

Biniyougbarta/SAM//