Japan Biz Failures Down for 1st Time in 6 Months in Nov.

Tokyo, Dec. 8 (Jiji Press)–The number of corporate bankruptcies in Japan dropped 7.4 pct from a year earlier to 778 in November, marking the first decline in six months and the second-lowest level so far this year, Tokyo Shoko Research Ltd. said Monday. The decline in the number of failed companies with liabilities of at least 10 million yen mainly reflected fewer bankruptcies in the services sector. However, a Tokyo Shoko Research official warned that the latest drop may be a “one-off,” as rising prices and labor costs continue to weigh on company earnings. From January to November, the number of corporate bankruptcies increased 2.2 pct to 9,372. The credit research firm said that the annual total is on track to exceed 10,000 for the second year in a row. In November alone, business failures decreased in seven of the 10 industries surveyed, also including construction, manufacturing and wholesale. On the other hand, bankruptcies increased in the remaining three sectors, including retail. Bankruptcies caused by labor shortages came to 34, up from 20 a year earlier, while those resulting from rising prices stood at 62, down from 70. Total liabilities at failed companies plunged 48.5 pct to 82,403 million yen, down for the third consecutive month. This was the lowest monthly amount so far this year. Business failures with liabilities of less than 100 million yen accounted for over 78 pct of the November total. END [Copyright The Jiji Press, Ltd.]