Insolvencies declined once again in January, according to new data from the Office of the Superintendent of Bankruptcy (OSB).
The agency reported that the total number of insolvencies, including bankruptcies and consumer proposals, decreased by 3.4% in January compared to the previous month. Bankruptcies led the way as they declined by 9.7%, whereas proposals slipped by just 0.7%.
Total insolvencies were also down by 6.5% from January 2021, the OSB noted. For the 12 months ended Jan. 31, insolvencies were down by 3.2% from the previous year.
In the year ended Jan. 31, consumer bankruptcies dropped by 13% compared with the same period in 2021, but the number of consumer proposals increased by 1.8% and business insolvencies were down by 4.2%.
The OSB reported that the sectors that recorded the biggest decline in insolvencies were retail trade, wholesale trade, and arts, entertainment and recreation.
The transportation and warehousing sectors, along with the construction sector, saw the biggest increase in insolvency activity.