Business failures among medium and large sized firms dropped year-on-year in June, according to the latest Insolvency Index from global information services company Experian.

The index reveals businesses employing 51-100 employees saw failure rates drop from 0.23% June 2010 to 0.19% last month. The rate of failure among firms with 101-500 employees more than halved year-on-year, falling from 0.17% to 0.08% in June.
 
The East Midlands witnessed the biggest improvement in June 2011, with the rate dropping from 0.11% in June 2010 to 0.09%. The South West recorded the lowest rate of failures, with just 0.07% of the business insolvencies last month. 

Firms in the North West and Scotland both experienced an increase on last year.
  
Max Firth, managing director for Business Information Services at Experian, says: “June’s data indicates that the UK’s business community as a whole is generally stable, however it also points to a change in circumstances for different sized businesses. The largest companies have experienced a turnaround in fortunes and now the larger mid-sized businesses are following suit with a significant improvement since last year. Our analysis also shows that businesses in the North seem to be faring slightly worse than their Southern counterparts.”