96 companies went out of business in January, which was a 13% drop compared with the same month last year, new figures show.
The figures from InsolvencyJournal.ie also show that the January figure was down by 28% compared with December.
The report says it is too early to say whether the rate of insolvencies has peaked.
However, it spells out how various sectors are performing.
Construction continues to be the worst affected sector, with a quarter of the total closures in January.
The number of manufacturing firms going out of business also dropped.
However, another report shows that the manufacturing sector grew at its fastest pace in more than 11 years in last month.
The NCB Purchasing Managers' Index was the highest since April 2000.
It says the rise in production was due to a sharp increase in new orders, but it was also influenced by an end to the severe weather conditions seen in December.
Employment in the sector climbed slightly for the second month in a row.
But costs increased to a 29-month high as oil prices jumped, leading companies to increase the prices they charged.
