The number of bankruptcies has increased for three consecutive months.

The number of bankruptcies has increased for three consecutive months.

The number of companies that went bankrupt last month was 724, surpassing the same month of the previous year for three consecutive months. Reflecting a strong desire to save money, the number of bankruptcies in one year is expected to exceed the previous year, especially in restaurants.

According to Teikoku Databank, a private credit research company, the number of bankruptcies with debts of over 10 million yen last month was 724, an increase of 2.5% from the same month last year.

Over the three consecutive months, labor shortages and soaring labor costs overlapped by industry, with the service industry centering on software development increasing by 9.8% and the construction industry by 7.2%.

In addition, in response to consumers' perseverance in savings, the number of bankruptcies in restaurants has risen to 668 from January to last month, increasing at the highest rate of the year.

According to the research company, “There is a risk that bankruptcies will increase as a result of the consumption tax rate hike.