OTTAWA (Reuters) - Canadian bankruptcies rose about 29 percent in September from a month earlier, as consumer felt the pinch of rising debt and a weak job market, and business insolvencies rose again after sliding to a 22-year low, a report released on Friday said.
The September rise is in keeping with a historical trend, according to the Office of the Superintendent of Bankruptcy, which compiled the figures.
"In the last 10 years, total insolvencies filed in the month of September have been higher than in August on seven occurrences," the report said.
Business insolvencies registered in August slipped to 466, the lowest since January 1987. They rose to 579 in September while consumer bankruptcies rose to 12,305 from 9,535 in August.
The spike in business bankruptcies disrupts a general downward trend, but consumer bankruptcies have risen since mid-2008, said Derek Holt and Karen Cordes of Scotia Capital.
"Debt levels and job market weakness trump low interest rates in driving bankruptcies," they said in an email note.
Compared with a year earlier, total bankruptcies jumped 43.3 percent. Business bankruptcies were up 1.6 percent and consumer bankruptcies grew by 45.5 percent.
Economists say bankruptcies typically lag the economic cycle so even as the economy recovers from a recession, the insolvency numbers may not recede immediately.
The sectors with the most bankruptcies in September were construction, manufacturing, retail trade and accommodation
and food services.
(Reporting by Louise Egan; Editing by Frank McGurty)
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