A new survey by Tokyo Shoko Research found that there was a 6.9% increase year over year of corporate bankruptcies in Japan over the April-September period. It was the first time in three years the number had increased.

The credit research company attributed the increase to companies finding they were unable to pay back government financial aid which was provided to get them through the pandemic period.

The numbers of bankruptcies have also been rising since August due to the fact the falling yen and strengthening dollar has driven the price of raw materials up in Japan, narrowing margins and making continued business unsustainable for some companies.

The survey found that corporate bankruptcies in Japan were up 18.6% over a year prior just in September, as the numbers rose month to month.

Over the six month period, the total liabilities left behind by bankrupt corporations rose three-fold, to 1.74 trillion yen ($11.7 billion). Marelli Holdings, a major automotive parts manufacturer, was responsible for a significant part of that total after filing for bankruptcy in June under Japan’s civil rehabilitation law.

Soaring fuel prices drove a surge of bankruptcies in the transport sector, where there were 162 cases recorded, up 42.1%, marking the first increase in three years. Meanwhile the service sector had the highest total number of bankruptcies at 215, which was the eighth straight monthly increase, while construction registered the fastest growth in the number of cases, rising 29.8% over the prior year. Real estate was one bright spot, posting only 104 cases, a drop of 5.4% over the prior year and the lowest number that sector had seen in 30 years.

Twenty nine prefectures, including Hokkaido and Kyoto, had an increase in the number of bankruptcies. Sixteen, including Osaka and Hiroshima, had a decrease in the number of bankruptcies registered. Two prefectures, Shizuoka and Nagasaki, saw no change.