June rise marks end of trade credit insurance claims falls

Trade credit insurance claims rose in June, putting an end to a trend of decreasing claims seen since the beginning of the year.

This is according to new data from trade credit insurer Atradius, released 24 July 2025, which highlighted consumer durables (140%), electronics (72%), transport (41%) and engineering (138%) as sectors that had seen a notable year-on-year increase in customers defaulting on their payments.

The firm said the data suggested “hopes for a smooth UK economic recovery may be premature, especially for sectors more exposed to consumer spending or global supply chain variability”.

However, it added several sectors had shown a decrease in claims, highlighting the “resilience of UK businesses amid ongoing economic uncertainty”.

The food sector has seen trade credit insurance claims fall 34% since the start of the year, while the construction industry has seen a 22% improvement.

Change in momentum

James Burgess, head of commercial at Atradius UK, said: “For many, this is a pivotal moment – as the full impact of US tariff increases remains uncertain and businesses collectively hold their breath ahead of the UK’s Autumn Budget.

”In this climate, those that actively manage credit risk and stay agile in their operations are better positioned to navigate emerging challenges and seize opportunities in a potentially shifting recovery landscape.”

He continued: “There’s no question that June’s rise in claims marks a shift in momentum. But what’s striking is the divergence in sector performance. While consumer-facing industries are clearly under pressure, others are proving remarkably resilient.

“It’s a reminder that while macroeconomic conditions are tough, not all businesses are being affected equally. There are still opportunities to grow – but only for those who are actively managing their credit risk and responding quickly to signs of customer distress.”