Several UK companies are not going into administration. It has been recorded its lowest level in January. It shows that financial strength of businesses has started to improve.

According to a credit reference agency Experian, the statistics showed that compared to 11 in December and nine at the same point last year, the rate of insolvency last month fell to seven in every 10,000 businesses going under. It was the lowest rate of insolvencies recorded in the UK since June 2007.

Hence it has provided a much-needed sign of a strong improvement in the collective financial strength of UK businesses.

Economists find it encouraging, but they are not too sure that the situation is totally under control despite this does hint at an improvement in the health of UK businesses.

Yorkshire had the maximum rate of failures. It has 13 in every 10,000 businesses going under. While the north east of the country recorded a 30% decline in insolvencies. South west was the most financially vigorous among all and Wales had the lowest rate of business failures in January.