Some industries stabilise while others struggle
Sales Performance Overview
The sales landscape remains stagnant, with minimal year-over-year growth overshadowed by a decline when accounting for inflation. On a positive note, overall debt levels have decreased, providing some relief for businesses navigating these challenging times.
Industry Trends and Insights
The construction sector is still grappling with difficulties, but there are signs that the pace of decline is stabilising. Manufacturing is facing significant challenges, while retail shows mixed results, indicating that consumer behaviour is shifting.
Economic Impact and Business Outlook
Economic factors, particularly inflation and interest rates, are creating a cautious environment for businesses. Companies are adapting to these pressures, which are shaping their strategies and operations.
Arrears Monitoring
Payment arrears present a mixed picture, with short-term arrears on the rise, though longer-term arrears show some improvement. Regionally, trends vary, with stability in major cities like Auckland and Christchurch.
Days Sales Outstanding (DSO) Insights
Different sectors are experiencing varied DSO trends, with some showing improvements in credit collection while others face challenges. This variability highlights the need for tailored approaches to managing receivables.
Liquidation and Insolvency Trends
There’s been an uptick in winding-up applications and businesses defaulting on debts, suggesting increasing financial strain. This trend points to a growing need for businesses to reassess their financial health.
Payment Performance Tracking
Payment performance metrics indicate a mixed landscape. While some areas show improvement, short-term arrears are climbing, particularly in the construction sector, which is still facing pressures.
Post-Stimulus Market Adjustments
The effects of government stimulus are now being felt, influencing insolvency rates and market stability. As businesses adjust to the new economic reality, they are finding their footing in this post-stimulus environment.
Construction Sector Spotlight
The construction sector is facing scrutiny, particularly regarding new dwelling consents. While there’s a slowdown in new projects, sales remain above pre-pandemic levels, demonstrating that businesses are effectively managing their pipelines in response to changing conditions.
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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.