The number of Swedish companies filing for bankruptcy is likely to swell as the records of non-payment increase.

More and more Swedish companies are forced to toss in the sponge as the global downturn hits demand and revenues. In May the number of companies filing for administration increased 32 percent compared to the same month last year, according to new figures from UC, Sweden's largest business and credit information agency.

Since the turn of the year the increase has been 45 percent, compared to the same period 2008.

“There are many companies struggling with diminishing demand due to the downturn”, said Roland Sigbladh, marketing manager at UC. “The tendency of over-establishment is visible in many lines of businesses and regions and there are no apparent signs of improved trade conditions”.

Despite the fact that the increase of bankruptcies has slowed down for the second month in a row, the record of non-payment increased during May. The number of companies facing difficulties paying their suppliers has gone up rapidly, suggesting a further swell of bankruptcies to the autumn.

“In all probability we will see a further increase of bancrupcy petitions during the summer and autumn”, said Roland Sigbladh.

Businesses suffering the most are within retail, construction and service enterprise specializing in law, economy and science.