Insolvencies in England and Wales improved in March, coming in 17% lower than in February and the same month a year ago.
Total insolvencies during the last month came in at 1,815, made up of 261 compulsory liquidations, 1,437 CVLs, 108 administrations and 9 CVAs.
Today's number came as a surprise to some analysts, who had expected high interest rates, increased business costs, weak economic growth and lower consumer spend to have hampered businesses.
Trevor Wood at law firm Vedder Price said: "Today’s figures are extraordinary. I don’t think anyone will have been expecting a fall in insolvencies.
"The reality seems to be that businesses and investors have managed to adjust, cutting their cloth successfully to match the economic climate. This is a real bolt from the blue – but a welcome one."
Simon Edel at EY-Parthenon added that beyond today's official data he has seen an increase in companies restructuring, "including more balance sheet restructurings, asset sales and a rising focus on working capital."
"Although inflation is easing, companies should act now and focus on protecting their balance sheets by improving liquidity and access to working capital ahead of refinancing events, rather than waiting for interest rates to come down," he added.