Construction industry insolvencies increased in the first quarter for the first time in two years.
The number of businesses going bust in the first quarter of 2011 was 948, according to analysis by accountancy firm Wilkins Kennedy. This was a 19% increase from the 796 that failed in the fourth quarter of 2010.
"The government has slashed capital spending on infrastructure across the board in order to plug the deficit and that has pushed the construction sector into a double dip," said Wilkins Kennedy director Anthony Cork.
"The question now is how quickly private sector construction work will be able to pick up the slack left by the public sector. So far this has not happened."
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