But analysts say more positive signs are needed to confirm a sustainable upturn
Personal bankruptcies fell in July to their lowest level in 17 months, highlighting the gradual recovery of the economy from the Sars crisis.
Last month, 1,521 people were granted bankruptcy - down by a quarter from the 2,014 people declared bankrupt in June, and the lowest number of cases since February last year, when 1,000 orders were granted, according to figures from the Official Receiver's Office.
Bankruptcies have been dropping since January, when they hit a record of 3,193. Bankruptcy petitions have also been falling for the past three months and can be seen as a sign that future bankruptcies may continue to fall because petitions typically take several months to wind their way through the courts.
The bankruptcy figures follow other encouraging signs for the economy.
Earlier this week the government announced that social security claims last month rose at their slowest level for five months, while the number of new applications fell 16 per cent in the same month to 8,400 from 10,000 in May.
The retail and tourism industries are also showing signs of recovery, with hotels saying they are almost back to normal occupancy levels and retail sales declining at the slowest since March.
