If insolvencies rise to their long term average norms, PwC estimates that the annual direct economic damage of business failures in Ireland could rise to around €6 - €7 billion.
Quarter-on-quarter growth in business failures was 31% when the third quarter of this year is compared to the previous quarter. Business failures in the arts, entertainment and recreation sectors and in hospitality sectors almost doubled between the second and third quarters.Dublin recorded the highest business failure rate during the third quarter at nine per 10,000.There were no business failures recorded in five counties during the period - Roscommon, Cavan, Laois, Waterford and Sligo.
"In our view, there will continue to be significant pressure on the profitability and cash flow of many businesses through the winter. The focus should be on performance improvement and cost reduction."