BUSINESS failures fell 19% in the second quarter of the year,

according to the latest estimates from credit insurance group Trade

Idemnity.

The company, which insures firms against the failure of customers or

suppliers, put the total at 835, compared with 1037 in the previous

three months.

The toll of company collapses is down 41% on the second quarter of

1993, when it stood at 1433.

''The drop in failure numbers this quarter is very satisfactory and

has exceeded our expectations,'' said William Simpson, Trade Idemnity's

chief economist.

However, he warned that companies recovering from the recession were

concentrating on paying off debts rather than investing in the future.

''While the drop in failures is undoubtedly good news,'' he said,

''the continuing postponement of investment decisions will have

ramifications well into 1995 and beyond.''