(Toronto) Insolvency cases in Canada increased in May compared to last year as inflation and high interest rates continue to hit businesses and consumers.
Data from the Office of the Superintendent of Bankruptcy shows that total insolvencies increased 19.2% from May 2023 and 3.1% from April.
Consumer insolvencies reached 12,195 in May, an increase of 3.4% from April and an increase of 11.3% from last year.
Corporate insolvencies decreased from April, falling 3.8% to 530, but were up 41.7% from last year.
Some sectors, however, saw sharp increases, such as construction where the 92 insolvency cases represented an increase of 24.3% compared to April and 109.1% compared to May last year.
The Canadian Association of Insolvency and Restructuring Professionals says consumer insolvency cases reached their highest volume since October 2019, while year-over-year business insolvency levels others have been increasing continuously for two and a half years.
In Quebec, the total number of insolvency files increased by 21.1% compared to May 2023 and by 7.2% compared to April.
Consumer insolvencies reached 3,110 in May, an increase of 8.4% from April and a 16% increase from last year.
Business insolvencies fell from April, falling 3.6% to 325, but were up 43.8% from last year.
Total insolvency filings increased in Ontario by 23.4% compared to May 2023, while the increase was 7.4% in New Brunswick, 8.4% in Nova Scotia and 8 .5% in Prince Edward Island.
