Newspaper article THE JOURNAL RECORD

Business Failures Fall 22% in State for First 9 Months

Newspaper article THE JOURNAL RECORD

Business Failures Fall 22% in State for First 9 Months

Article excerpt

NEW YORK _ Business failures in Oklahoma fell 22 percent in the first nine months of 1994, a leading provider of business information said Friday.

There were 901 business failures in Oklahoma during the first nine months of the year, down from 1,155 for the first nine months of 1993, according to Dun Bradstreet Corp.

Liabilities associated with business failures in Oklahoma for the first nine months of 1994 totaled $123.4 million.

Research released by Dun Bradstreet showed U.S. business failures eased 19 percent in the first nine months of 1994 to 54,669 from 67,498 in the same 1993 period.

All major industry groups experienced declines. Regionally, New England boasted the best record with failures in those states collectively down by a bigger percentage than elsewhere in the country.

"Nearly all current economic indicators show that the recovery is clearly in place. The continuing decline in business failures is a reflection of the strengthening economic environment," said Joseph W. Duncan, Dun Bradstreet's chief economist.

With the number of businesses going bust on the decline since the figure hit a high in 1992, Duncan said the outlook for all companies should brighten. Failures peaked at 97,069 in 1992 and will probably end this year at roughly 73,000 if current trends continue, down from 85,982 last year.

"Business failures have been declining steadily for well over a year now, suggesting further improvements in the business sector well into 1995," he said.

Dun Bradstreet monitors business failures by tallying companies that go into bankruptcy of one form or another, leaving behind losses and unpaid debts.

The statistic is regarded as a barometer of the business climate. In tough economic times, the number of business failures typically swells, putting pressure on surviving companies to bear heavier liabilities and suffer losses in their accounts receivable, or money owed to them.

Fewer business failures, as is the case this year, relieves stress on companies, producing a more favorable operating environment in general. …

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