Companies going into liquidation between July and September dropped by 11.7 per cent compared to the same period last year, official statistics show.
The decrease in the number of liquidations is part of a general trend since 2013 however the number of liquidations in the quarter remained higher than before the recession.
Personal insolvency cases have also seen a 4.6 per cent decrease on the same period last year, though the number of people entering into Debt Relief Orders (DROs) rose by 2.7 per cent in the last quarter.
Insolvency expert Paul Moorhead, of Rotherham based insolvency practice Moorhead Savage, said the figures showed the economy was strengthening for companies and individuals.
He added: “It is encouraging that fewer companies are going bust and fewer individuals are having to resort to formal insolvency procedures to deal with their debts.
“This reflects increased optimism in the economy which I have seen in recent months. The downward trend is encouraging.”