The number of business start-ups has dropped in Ireland, according to the Bank of Ireland’s Business Banking division.

In its latest Business Start-up Barometer the bank found that there had been a 20 per cent decrease in the number of newly-formed companies so far this year, compared to the same period last year. The bank said start-up activity has returned to normal levels prior to an unusually strong 2007, and that business sentiment amongst small companies was high.

The Barometer shows that, consistent with the recent slowdown in the economy, the number of new businesses established has fallen by 20 per cent to 4,109. However, the report states: “with approximately 4,500 businesses established in the same period in 2006, this year's figures reflect a return to normal levels of activity following a particularly active first half of 2007.”