The number of corporate insolvencies forecasted for the first nine months of the year is up over a third on the same period of last year, new figures show.

According to Deloitte, 378 businesses are set to have become insolvent over the period between January and the end of September, compared to 278 over the same nine months a year ago.

In the third quarter of the year alone, the number of insolvencies is forecasted to reach 125, up nearly 50% on the same three months in 2021.

"Based on current insolvency activity levels and trends it now appears that the previously forecasted wave of insolvencies is becoming a reality," said David Van Dessel, Partner, Financial Advisory at Deloitte.

"Rising inflation, higher interest rates and spiralling energy costs are likely to increase pressure on businesses over the coming months."

"In addition, consumers impacted by inflation and interest rate increases may also reduce their discretionary spending, further exacerbating downward economic pressures."

Services is the sector where most of the insolvencies have taken place, accounting for 195 or 52%, up from 46% a year ago.

Within that sector, financial services was the group that recorded the largest number of failures, at 77.

Real-estate, entertainment, arts and media also featured prominently in the total.

There was also 38 in construction, 28 in retail, 26 in hospitality and 21 in manufacturing.

Perhaps unsurprisingly, Leinster saw the highest number of projected insolvencies, followed by Munster, Connacht and Ulster.

259 or 70% of the insolvencies forecasted for the first nine months of the year are accounted for by Creditors Voluntary Liquidation, up just over a third on the same period last year.

Corporate Receiverships are also forecasted to increase by a third by the end of the period, while Court Liquidations are set to increase from 15 to 20 year-on-year.

Deloitte said there has also been a recent sharp increase in the use of the new "examinership light" process for small firms, known as the Small Company Administrative Rescue Process (SCARP).

In total, six SCARP appointments took place last month alone.

"In addition, the recent news that the Revenue Commissioners are now issuing payment demands against businesses who are in default on current taxes, including businesses who availed of the warehoused debt facility during the pandemic, will place further distress on those businesses and may further accelerate the increase in insolvency activity," Mr Van Dessel said.