October’s report shows steady, yet cautious, progress across various industries.
While inflation continues to exert pressure, sales have seen a modest increase of 0.3% MoM. However, when adjusted for inflation, the YoY figure has declined by 3.4%, highlighting ongoing challenges. Retail and hospitality sectors have shown resilience with positive YoY growth, but other sectors like construction and manufacturing are grappling with declining sales and rising financial strain.
Arrears trends are mixed: 60-day arrears have worsened in key regions, while 90-day arrears have seen slight improvements. The construction sector is under pressure with a notable drop in new dwelling consents, although sales pipelines in the South Island remain strong. Insolvencies have risen by 22.2%, particularly within manufacturing, pointing to the increasing strain on businesses.
On a positive note, payment performance is slightly improving across industries, and DSO metrics suggest businesses are adjusting their credit collection strategies. While the market remains complex, businesses are adapting and finding ways to move forward despite these challenges. The full report offers deeper insights into these trends and highlights strategies that can help businesses thrive in uncertain times.
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.