Sales data continues to be flat across many industries. The economy continues to reflect the impact of a high interest rate and the cost of living crisis.
Payment performance data for May saw a continued improvement in 60 Days arrears and a minor improvement in 90 Days arrears, again emphasising some entrenched overdue debt.
June data already received is showing tighter sales conditions for the month**. As a key driver of the New Zealand economy the Construction segment has had a lot of media attention focussing on Consent data. While the level of Consents has declined from a peak of 52,000, and with many analysts predicting levels below 30,000 for the 2024/25 year, these figures need some context. The peak of 52,000 included many Consents for buildings to avoid the deadline for new H1 requirements for builds making the peak artificially high. During the last downturn following the GFC Consents fell from a peak of 33,000 to below 13,000, so the current decline is more of a “correction’ than a ‘collapse’, and part of New Zealand’s boom and bust cycle.
Our regular commentary on Industry Days Sales Outstanding, show a majority industries on the improve for year on year but again mixed results for month on month.
**June 2024 only had 18 business days due to the timing of King’s Birthday and Matariki holidays compared to 20 in 2023
CreditWorks Group holds New Zealand’s largest trade database, and we have the very best view of commercial credit performance for over 30 industry sectors in New Zealand with most sectors over the 80% market info and some at 100% coverage. Discuss with us today how we can help you with comprehensive credit reporting and monitoring of your customers. Our goal is to help you grow sales while minimising risk.
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.