IRISH companies have spent more than £1.3 billion on acquisitions so far this year, a 205 per cent increase on the same period in 1995, a new survey has shown.

Indicating strong economic growth and a high level of confidence within the business sector, research by Chapman Flood Corporate Finance shows that, over the past six months, some 76 acquisition deals have been completed by Irish companies, compared with 46 in the same period last year.

Commenting on the figures yesterday, Mr Peter Chapman, the firm's managing partner, said its research indicated the sharp rise in acquisition activity would continue throughout the rest of the year. A continuation of low interest rates, low inflation and strong economic growth would prompt further acquisitions, he said.

The latest figures indicate that most activity was in the construction and property sector, which accounted for 30 per cent of all deals done since the beginning of 1996. The normally aggressive food, drink and agribusiness sector remained relatively quiet, with just seven acquisitions at a total cost of £63 million.

The main contributor to the sharp increase in acquisitions was the financial services industry, investing an estimated £637 million in six deals. Bank of Ireland's acquisition of the British Bristol & West building society for £582 million accounted for most of this increase.

Next to Bristol & West, Elan's acquisition of the Athena Neurosciences group in the US for £406 million was the second biggest purchase by an Irish based company this year. Most of the acquisitions were made in Ireland, with some 22 deals completed in Britain.