For the first time in months, the UK insolvency data has moved the right way.
According to Creditsafe, 2,074 businesses across the UK and Northern Ireland entered insolvency in August 2026. That is 19% fewer than in July, and 10% fewer than in August 2025.
01Construction still leads the failures
Construction accounted for 350 insolvencies in August. That is 17% of the month's total, and the largest share of any sector.
Wholesale and retail followed with 290. Accommodation and food services had 261. Between them, those two sectors made up 27% of all failures.
So the improvement is real, and it is not evenly spread.
02What it means if you were planning to buy
Many would-be buyers have spent 2026 waiting for a weaker economy to produce cheaper businesses.
August is the first month in a while where that logic points the other way. One month is not a trend, and the level is still high. But waiting for conditions to worsen is a bet on the economy rather than on a business.
It is also worth remembering that an insolvency is not a business arriving on the market. Most insolvent companies are closed down rather than sold on.
We have written a longer guide on what the figures mean for timing an acquisition, and what to have ready before you make an offer: buying a business in 2026.
