03:21 PM EST, 11/13/2024 (MT Newswires) -- Canadian business insolvency filings in the third quarter reached a level not seen since the financial crisis, according to data from the Canadian Association of Insolvency and Restructuring Professionals (CAIRP), BNN Bloomberg is reporting Wednesday.

Business insolvency filings reached 1,312 during the third quarter of this year, CAIRP said in a press release Tuesday, marking the largest volume in the third quarter since the 2009 Great Recession. The increase marks a 16.2% increase year over year, but a 14.9% drop compared to the previous quarter, suggesting lower borrowing costs and easing inflation are providing some relief.

"Although quarterly business insolvencies have continued to increase year over year, the drop from the previous quarter this year suggests that some businesses are beginning to adjust to the current economic conditions," Andre Bolduc, a licensed insolvency trustee and CAIRP chair, said in the release.

"The recent declines in interest rates and resulting lower financing costs could be easing some of the margin pressures for businesses."

According to CAIRP, businesses insolvencies during the third quarter remained 58.6% higher than the level seen before the COVID-19 pandemic in the third quarter of 2019. Monthly data also showed business insolvencies during the month of September rose 11.5% from the previous year and 8.3% compared to August of this year.

Wednesday's report noted some of the sectors that saw the largest number of business insolvencies during the third quarter of this year compared to the previous year were construction, accommodation and food services, as well as transportation and warehousing.

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