How NZ Sectors are Meeting Economic Challenges
In September, the shifting economic environment across New Zealand’s sectors revealed challenges and opportunities existing side by side. With high interest rates and inflation persisting, some industries demonstrated remarkable resilience and adaptability. Sales trends presented a mixed picture; while annual sales figures showed slight contractions after inflation adjustments, regions like Christchurch’s construction industry/sector remained stable due to strategic adjustments within the industry, such as improved efficiency and reduced costs.
When it came to credit health, the arrears situation offered a nuanced view. Some sectors faced increased arrears, yet others saw improvements, thanks to effective credit management. For example, Auckland’s retail sector experienced positive momentum in payment performance, indicating recovery despite broader economic pressures. While the number of winding-up applications rose year-on-year (Primarily thanks to the IRD’s increased focus on clamp downs of overdue tax vie enforcement), prudent credit practices in more stable sectors helped balance these figures.
Days Sales Outstanding (DSO) trends across various industries revealed that many companies adapted their credit collection cycles to safeguard cash flow and reduce risks. This proactive stance was particularly evident in the construction and retail sectors, where shifting consumer demand and urban development trends created new opportunities.
As businesses adjusted their strategies considering both challenges and opportunities, there was a clear need for vigilant credit monitoring and adaptable management practices. By pinpointing areas for growth and those requiring caution, businesses could make informed decisions and build resilience in a fluctuating marketplace.
CreditWorks Group provides extensive, real-time credit data and historical insights, helping businesses understand the deeper credit risks and payment behaviours of their customers. Our secure and comprehensive services ensure that companies can make informed decisions based on a complete picture. Discuss with us today how we can help you with comprehensive credit reporting and monitoring of your customers.
Please note that due to the vast amount of data required to produce these reports, most of which is accessed from a multitude of external sources, there is an inevitable time delay in their generation. However we prefer to defer their publication in favour of ensuring greater accuracy.