Surge in Business Creations and Decrease in Closures in the UK: July to September 2023

The latest experimental statistics on business demography for the third quarter of 2023 reveal a notable increase in business creations and a decrease in closures in the United Kingdom.

Key Points:

  1. Business Creations:
    • In Q3 2023, 78,655 new businesses were added to the Inter-Departmental Business Register (IDBR), marking a significant 15% increase compared to the same quarter in 2022.
    • The surge in creations was observed across various industries, with professional, scientific, and technical activities experiencing the most substantial growth of 34%.
    • This quarter marks the first time since Q2 2021 that business creations have outnumbered closures.
  2. Business Closures:
    • The number of businesses removed from the IDBR in Q3 2023 was 69,445, indicating a 14% decrease from Q3 2022.
    • Notably, closures decreased in 10 out of 16 main industrial groups, with the transport and storage sector experiencing the most significant decline of 41%.
    • Q3 2023 is the first quarter since Q2 2021 with more business creations than closures.
  3. General Trends:
    • The overall business climate shows a positive trend, with a 15% growth in business creations and a 14% reduction in closures.
    • The professional, scientific, and technical activities sector played a key role in driving the surge in business creations.
    • The transport and storage industry, on the other hand, witnessed a substantial decrease in closures.
  4. Experimental Statistics:
    • It’s important to note that these statistics are experimental, and caution is advised in their interpretation.
    • The quarterly data may not be entirely consistent with the annual Business Demography publication, which remains the primary source for accurate business demography information.

These figures provide an early indicator of the economic landscape, emphasizing the resilience and dynamism of the UK business environment. The data will be crucial for policymakers and businesses alike in understanding the evolving economic scenario amid the ongoing impact of the COVID-19 pandemic.