Insolvencies increase 70% year-on-year in Q1 with key sectors hit by lingering economic uncertainty - CRIFVision-Net

The number of company insolvencies increased by 70% year-on-year in the first three months of 2023, according to our latest CRIFVision-net figures.?

Insolvencies are up in 12 out of the 16 sectors analysed, with bellweathers such as hospitality, manufacturing and retail all showing dramatic increases.?

The only sectors to see decreases in YoY insolvencies in Q1 compared with 2022 were legal, accounting and business (-29%), real estate (-82%), electricity, gas and water supply (-100%) and mining (-100%).??

Of the urban hubs, only Limerick recorded a decrease in insolvency closures. Dublin and Galway saw increases in the number of business insolvencies, but Cork saw the most significant rise of 157%.??

Meanwhile, company start-ups fell 0.8% over the quarter when compared to a year earlier, the data showed, with growth slowing in the number of companies created in construction, retail, legal, accounting and business, motoring, manufacturing and leasing.?

Start-ups have faced tough economic challenges in the first three months of this year, which really started to take hold in the same three period in 2022 following the invasion of Ukraine.?

Last year was the lowest point for the number of new start-ups in Ireland in six years with a -16 per cent change on 2021. The first quarter of this year has started weaker than last year which suggests some challenging times ahead.??

However, there is room for some cautious optimism as March saw a year-on-year increase of 233 new company start-ups, and around half of counties saw an increase in the number of new companies registered, including Roscommon, Sligo, Offaly, Kilkenny, Cavan and Kerry.?

ENDS??