Over 1,500 firms set up last month in seven-year high
The July start-up figure of 1,518, published yesterday by business intelligence provider, Vision-net, marks an 11% year-on-year growth rate (1,371 new firms started in July of last year). It is the highest level of new company creation seen in the month of July since just before the recession took hold in the middle of 2007.
Vision-net managing director, Christine Cullen said that the figures provide “further positive signs of economic renewal” and are indicative of greater business confidence.
“The strong increase in start-ups will also have a knock-on effect in the wider economy, such as in job creation or improving B2B [business-to-business] trading,” she said.
The latest figures also show a strengthening of confidence amongst those involved in previously weak sectors such as motoring and construction; the latter being the third most popular industry for start-up activity in July.
“This month, construction continues to be the sector to watch, having grown to be the third most popular industry for company start-ups.
“Likewise, a decline in insolvencies in the motoring, construction and real estate sectors is encouraging.
“This decline indicates that these industries are gradually becoming more resilient, while spending on big ticket items — such as cars or new homes — is beginning to recover, albeit from a low base.”
The level of company insolvencies in the motor industry fell by 86% year-on-year during July and by 47% in the construction sector. A fall of nearly 30% was also noted in the property sector.
However, the wholesale and retail sectors are still viewed as being vulnerable, with 31 businesses collapsing last month, a rise of 139% on the corresponding month last year.
In terms of bad debt judgements for the month of June, a total of 362 were awarded against consumers and companies, worth €45m, 67% against consumers, totalling €43.4m.
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