In the second quarter of 2020, insolvencies fell by nearly one-third, or 29.4 per cent, compared to the same time last year, and stayed unchanged at 474 in the third quarter, for a year-over-year drop of 13.8 per cent, according to Statistics Canada. (The Logic)

Talking point: The economic data in the second quarter wasn’t all good: real GDP fell by a record 11.3 per cent, and businesses reported lower net income before taxes and operating revenues, down 8.6 and 13.1 per cent, respectively. Still, insolvencies fell in most industries at that time, with construction leading the change, down 32.1 per cent. The industry had the largest share of loan approvals in April and May through the Canada Emergency Business Account. The downward trend “could indicate that businesses are waiting to see whether more government aid will be forthcoming and whether they will be able to manage their debt levels before filing for insolvency,” said StatCan. “Low borrowing costs for businesses could also partially explain this drop.