New company formations in the East Midlands reached their highest level since March, signaling renewed entrepreneurial activity amid broader economic uncertainty.
According to data from Creditsafe compiled by R3 Midlands, 2,566 new businesses were registered in September, marking a 20% increase on the same month last year. The figures suggest growing confidence among business founders and investors across the region.
Insolvency activity also eased during the period, with fewer company failures, administrations, and creditor meetings recorded compared with previous months.
While the increase in start-ups points to optimism, underlying challenges remain. The construction sector continues to face a slowdown, particularly in housebuilding and smaller contracting projects, which are sensitive to shifts in demand. Retail and hospitality firms are under pressure from high labour costs and weaker consumer confidence.
Labour market indicators show rising unemployment and a decline in job vacancies, reflecting wider economic caution. Industry observers note that while new business growth is positive, firms must continue to monitor cash flow and plan strategically to navigate potential headwinds through the remainder of the year.
