May’s data shows a market shifting gears steadily but cautiously. Sales have picked up after April’s stall and arrears are easing across most sectors and regions. But beneath these surface improvements, risk remains.
Sector performance is uneven. Construction is flat on average while Food and Beverage sees strong sales but rising arrears. Manufacturing and concrete face ongoing challenges while Christchurch continues steady growth. Different industries are adjusting at different speeds.
Businesses are tightening credit. Days Sales Outstanding are falling as companies collect faster and offer less credit, driven by Solvency Anxiety – the growing concern about customers’ financial stability, which is prompting tighter terms, faster collections, and more cautious credit decisions.
Solvency Anxiety is founded. Winding up applications are up nearly 24 percent year on year, with bad debts rising at a similar rate. These are clear signs many businesses are struggling to stay ahead of risk. For many, if not all, it’s not a question of if but when. This anxiety does not stimulate growth.
This pressure is reflected in insolvency figures that remain above long-term averages. Company insolvencies and winding up applications are tracking at levels not seen since 2011. While personal insolvencies have been stable so far, they are expected to rise alongside corporate failures. Low business confidence and a soft property market suggest these risks will persist through 2025.
In this environment, sharing accurate credit data with CreditWorks is essential. It turns solvency anxiety into insight, and keeps credit flowing to reliable customers, managing risk without stifling growth.
Read the latest insights: Knowing your customers’ financial health is no longer optional.
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.
