Company formations increased by 5% in the first half of this year compared to H1 2018, according to Vision-Net, with 12,140 new entities registered, most of them in Dublin.

With 67 companies being formed every day, the professional services sector was the biggest contributor with 2,650 new companies, up 9.7%. Social and personal services grew by 39% (457 new companies).

The third and fourth largest sectors, financial services and construction, experienced a slight decrease, falling 4% and 6% respectively.

While the rate of insolvencies fell by about 14% on the previous year, the numbers were uneven, with the hospitality sector’s 38 insolvencies representing an increase of 15% while the professional services figure of 59 insolvencies indicating a decline of 12% despite being the single largest number by sector.

Managing director Christine Cullen (pictured) said: “Despite the great ‘known-unknown’ of Brexit and a gentle deceleration of the rapid economic growth of the last five years, Ireland’s economy remains in an overall buoyant state.

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“This is very evident in our half-year figures, which show a record-breaking period for new company startups. Professional services, wholesale and retail experienced steady growth. Despite a slight decrease in construction startups, the industry continues to thrive overall.

“However, in some areas, it is becoming clear that external factors are affecting our economy, with warnings of economic overheating and Brexit-related downturns.

“Among the five counties that border Northern Ireland, Monaghan and Sligo reported a significant decrease in startup figures. Construction startups decreased in Cavan, Donegal, and Monaghan. Ireland’s unique exposure to Brexit means the government must allow for detailed analysis of all scenarios to offset some of its negative impact on the Irish economy in the long run.”