(Bloomberg) -- More than 700 Swedish companies went bankrupt in September, with real estate companies among the hardest hit, according to data from credit reference agency Creditsafe.
The 17% increase from last year is a sharp turn for the worse, following a 3% annual decrease in August. Property owners had another rough month, as bankruptcies in the sector more than doubled.
While hopes have increased about an economic recovery in Sweden as the central bank has reduced borrowing costs, an uptick in sentiment has yet to translate into rising activity. That uncertainty continues to put pressure on businesses in Sweden, Henrik Jacobsson, chief executive officer of Creditsafe in Sweden, said in a statement.
“Unemployment is rising, a lot of companies are forced to give notice to staff and investments in the Swedish business sector are at historically low levels,” he said. “This fall will be tough for many business owners.”
The number of employees in companies that failed increased by 50% in the first nine months of the year compared with the same period a year ago, according to Creditsafe’s data.
However, not all sectors saw defaults rise in September, as bankruptcies among retailers were down almost 20%, while the numbers for hotels and restaurants as well as construction companies were down 10%.
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