“Robust” business supports are needed in tomorrow’s Budget as insolvencies tick up, according to the head of credit risk analysts CRIFVision-Net.

The number of firms going bust in the third quarter was 54pc ahead of the same time last year, CRIFVision-Net data show, with 185 insolvencies recorded between July and September, compared to 120 in the same months last year.

There was a slight increase in firm failures in the education, leasing and retail sectors, with Cork recording the highest number of new insolvencies of any county, at 21.

Higher costs and interest rates are adding to pressure on firms, said Christine Cullen, CRIFVision-Net’s managing director. “The persistent nature of inflation has emerged as a notable factor contributing to the elevated insolvency rates,” she said.

“Inflation persistence has prompted challenges for businesses, particularly around areas like repayments, given the backdrop of elevated prices and the rising interest rate environment.

“Looking ahead to the final quarter of the year and into 2024, as we prepare for the Budget this week, it is increasingly crucial for the Government to provide robust supports to businesses. These supports can help cushion the impact of inflation and interest rate fallout.”

The rise in insolvencies was balanced by a 12pc jump in the number of new businesses being created in the third quarter, which rose to 5,154.

While Dublin recorded the highest number of new start-ups in the quarter, Mayo, Cavan and Carlow recorded the highest growth in new company registrations compared to last year.

The motor, computer and legal sectors saw the highest growth rates.

But the number of start-ups registered in the education, utilities, agriculture and real estate sectors fell on the third quarter last year.

“Examining the third quarter of this year against last year presents a peculiar picture,” Ms Cullen said. “In the broader context, Ireland’s economic outlook continues to be optimistic, as seen through the growth in start-ups.

“The resilience of its entrepreneurial spirit, coupled with potentially improving inflationary conditions, provides reasons to be positive. While challenges persist, there’s an underlying sense of confidence that Ireland’s business community will continue to adapt and thrive amid the challenges, especially with supports in place.”

Reporting On: www.independent.ie