July’s market data shows an economy that looks steady on the surface but carries clear pressures underneath. Sales momentum held, yet when inflation is factored in, real growth remains flat. Margins are tighter than the numbers suggest and profitability is under pressure.
Industries are moving in different directions. Manufacturing in Christchurch grew 3.6% month-on-month and Wellington 1.1%, while retail, construction, and food and beverage faced patchy results. Food and Beverage arrears worsened by 2.5% in July, while Concrete and Steel arrears improved 1.8%. Some businesses are taking advantage of resilient sectors while others are being hit by volatility.
Payment patterns show a mixed picture. Collections are improving in some sectors, but 90-day arrears increased 0.37% year-on-year. Total debtor balances rose 1.7% month-on-month, showing many firms are leaning on credit to keep operations going. Liquidity is a watchpoint and businesses that delay collections risk compounding debt pressure.
Insolvency activity remains elevated with construction and hospitality most exposed. The IRD accounted for 67% of July’s winding-up applications. Directors are opting for liquidation over restructuring, showing the environment is tougher than previous years.
Construction is stabilising but building consents are flat. Regional arrears are inconsistent, reflecting the uneven confidence in the sector. Opportunities exist, but success depends on strong credit management and cash flow discipline.
Sharing your data with CreditWorks gives you the real-time insights you need to spot risks early and protect your business. Knowing where pressures are building lets you act with confidence and safeguard growth.
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.