Our new Key Credit Insights report data is showing an emerging trend on payment arrears across multiple sectors in New Zealand.
Starting in August both 60 day and 90 day overdue balances have begun to gradually increase particularly in the 60 day overdue band.
Sales are holding but we are seeing a flattening trend across the industry segments, which is of concern heading into the December / January holiday break.
Key aspects impacting on the credit landscape are still supply chain delays (local and global), labour shortages, and uncertainty about the future economic outlook in New Zealand. Many of our clients are also receiving feedback from their buyers that the cost of credit based on increased interest rates is impacting their ability to trade and meet their obligations.
We expect 2023 to present more challenges.
This month the report also includes an overview of the construction section, which is a barometer of the wider NZ credit environment.
View the full Key Credit Insights report here
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.