Germany corporate insolvencies rise in September

Corporate insolvencies in Germany rose significantly in September, according to an analysis by the Leibniz Institute for Economic Research (IWH). There were 1,666 company failures recorded, representing a 9 percent increase from August and a 13 percent increase compared to the same month last year. This figure is 85 percent higher than pre-pandemic levels.

Despite the monthly spike, the third quarter showed a slight overall decline, with 4,880 insolvencies—a 2.3 percent decrease compared to the second quarter. Additionally, the number of jobs affected by these insolvencies fell by 10 percent to 41,000. However, the service sector saw its highest number of insolvencies since 2020.

Regional data from Lippe indicates a similar trend, with 55 corporate insolvencies in the first half of 2026, a 10 percent increase over the previous year. The construction and trade sectors were most heavily impacted. In North Rhine-Westphalia, insolvencies rose by 7.5 percent during the same period, driven by high energy and labor costs alongside weak demand.