However, the print industry recorded a slight increase in insolvencies compared to last the same month in 2009.

Across the UK as a whole, there were 1,491 insolvencies in May – an 18% drop compared to the previous month and down from 2,023 in the same month last year.

According to Experian, the change was down to a vast month-on-month and year-on-year improvement among medium-sized businesses (51-100 employees).

Experian said that these businesses had suffered some of the highest levels of insolvencies in the past two years, however, in May the number of insolvencies compared to the number of businesses was 0.13% – down from 0.24% in April and 0.23% in May 2009. It is the lowest point for the SME sector since September 2007.

In print, paper and packaging, there were just five insolvencies recorded by Experian in May 2010, up from two in May 2009. Despite the low number, it was one of just five industries to see an increase, alongside manufacturing, leisure and hotels, food retailing and insurance.

Rolf Hickmann, managing director of Experian company pH, said: "Apart from the very largest businesses, companies of all sizes saw marked improvements in insolvency rates. 

"The small deterioration in the overall financial strength score for UK businesses during May highlights the need for businesses to ensure they continue to exercise caution with regards to their risk exposure and those they choose to deal with."