November bankruptcies worrying for construction industry

Figures blight high hopes for 2014

Figures from the national statistics office Danmarks Statistik show a 5 percent rise in bankruptcies from October to November but 1 percent fewer than a year ago. For the construction industry, the level was unchanged compared to November 2013, and this is cause for concern for the industry association Dansk Byggeri.

Improvement halted
Fernstrøm, a consultant at Dansk Byggeri, explained that prior to the release of last month’s figures, the organisation had been hopeful that the industry was experiencing a turnaround from a high level of liquidations last year.

“Up until October, we had witnessed about 30 percent fewer bankruptcies than in 2013,” he said.

“But then the next two months had at least the same levels as the corresponding months last year.”

Worrying development
Fernstrøm said that Dansk Byggeri would watch the development but emphasised that the overall picture for the year was not catastrophic.

“It’s definitely something we’ll be following with a degree of concern,” he said.

“But even with the bad ending to 2014, there is no doubt that we’ll end with fewer bankruptcies than last year.”