The Canadian Press

Fewer Canadian firms and consumers went broke in January compared with December, an indication of improving economic conditions.

The 6.7% decrease in insolvencies between December and January of this year was the biggest in 20 years, according to the federal bankruptcy office.

The superintendent of bankruptcy’s office says January usually marks an increase in the number of insolvencies.

Despite the month-to-month improvement in January, the number of insolvencies was 26.4% higher than a year earlier.

Insolvencies, almost all among consumers, rose steadily during the recent economic downturn until they peaked in September.

September usually marks a seasonal high point for insolvencies but the number was even bigger last year as a result of one-time changes to filing procedures.

IE