Experian, the credit information group, said there had been a 4.7% reduction in the number of failing businesses in the first three quarters of the year, compared to the same period in 2006. The group recorded its biggest number of corporate failures in 2006 with 20,067 businesses going under.

However, it is warning that 11 of the 34 sectors it analysed have seen more failures. Business services accounted for the most failures, around a quarter of the total.

An Experian spokesman said:

"On the surface, the continued fall in corporate failures in 2007 is positive news.

"But the current improvements do have to be seen against the backdrop of one of the worst ever years for business failures last year and it's clear that a number of sectors are still struggling."