The figures, from credit checking group Experian, show a 9% increase in the number of firms going out of business in the first six months of the year compared with the same period last year.

A total of 9,589 firms collapsed between January and June, although the failure rate started to slow towards the end of the period, icWales reported.

Experian's Richard Lloyd said:

"We can see some firms have been hit hard by increasing fuel, energy and raw material costs. But the 2% slowdown shows companies are at least beginning to take these growing costs into consideration."