New statistics compiled by InsolvencyJournal.ie have revealed a significant increase in insolvencies in February – with the construction sector the worst affected.

The number of companies that went out of business last month was up by 33% from 110 in January to 146 in February with approximately five businesses per day going bust last month.

While the number of insolvencies in the construction industry had been on the decline, hopes for a recovery in the trade seem to be premature. Construction was yet again the worst affected sector with 47 insolvencies – up 34% on last month.

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These figures would suggest that perhaps the downturn in construction has yet to bottom out.

Commenting on the statistics, Ken Fennell of Kavanagh Fennell, said: "This was the second highest monthly total, second only to December 2009, recorded by InsolvencyJournal.ie since January 2007. If the trend continues, total insolvencies this year could exceed the 1,406 insolvencies recorded in 2009. Dublin was particularly badly affected and accounted for 38% of all insolvencies."

Leinster was the worst hit region again during February, accounting for 60% of the total number of insolvencies but there was a surge in company failures in Connaught – up from 7 in January to 18 in February.

(NS/BMcC)