A report by Dun and Bradstreet reveals a "disappointing" 34% increase in businesses going to the wall in Wales during the first three quarters in 1999.

The figure was the worst for all the UK regions, ahead of the East Midlands (25.9%).

D&B senior analyst Philip Mellor said the "disappointing increase" in failures could be pinpointed.

More businesses in Wales have folded in the last nine months than anywhere else

"Although there has been a rise in business confidence among almost all sectors of the economy these figures illustrate the downside of the very tight profit margins under which many companies are having to operate," said Mr Mellor.

Total business failures in Wales during 1998 totalled 967 with the figure increasing in 1999 to 1,297.

Business bankruptcies also rose for the same period from 710 to 948, a rise of 34.9%, while liquidations also increased to 339, a rise of 31.9%.

The Dun and Bradstreet statistics showed the quarterly rate of business failure was the highest since 1992, at the peak of the last recession.

At that time, 16,000 businesses went bust during the summer months.

To date in the UK this year, 33,000 businesses have gone bust, an underlying increase from 10.7% to 13.2%.