Sharechat Logo

Fewer NZ business insolvencies, Australian failures rising

Wednesday 12th October 2011

Text too small?

Credit checking agency Dun & Bradstreet says New Zealand is now experiencing one of the lowest rates of business insolvency among developed countries it monitors, but that a surge in Australian failures means kiwi firms can’t be complacent.

Releasing the results of the latest D&B Global Insolvency Index, the agency’s local general manager John Scott said strong commodity prices and low interest rates appeared to be key reasons for the number of insolvencies in the September quarter falling by 20% compared to June 2010.

Only Latvia ranked better for insolvency rate improvements than New Zealand, among the countries D&B monitors, with a 50 point advantage over Australia, 25 points better than Britain, and 18 index points ahead of the U.S.

Some 670 business failures were reported in New Zealand in the September quarter, compared with 850 in the same quarter last year.

However, the rapid decline in business conditions in Australia was cause for concern.

“Australia now sits on a par with indebted Eurozone countries such as Italy, Spain and Hungary, despite having a booming mining sector,” said Scott. There had been almost 1,000 Australian business failures in July alone.

“Given that Australia is our largest two-way trading partner and accounts for $17.7 billion in total trade, it is crucial that kiwi businesses do not take our lowered insolvency figures for granted.”

The index result also suggests that many businesses continue to face cash flow constraints, with the average time to pay invoices at 46 days, two days longer than a year ago.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

7th December 2021 Morning Report
Sky Network Television Limited (NZX: SKY) Transformation accelerates - Sky raises FY22 guidance
PGG Wrightson Limited (NZX: PGW) FY22 Operating EBITDA forecast to better last year
Vulcan Steel Limited (NZX: VSL) Trading Update & Earnings Upgrade
6th December 2021 Morning Report
Synlait Milk Limited (NZX: SML) Partnership to enhance soil health; test regen ag practices
Property for Industry Limited (NZX: PFI) Strong Valuation Outcome, Penrose Acquisition
3rd December 2021 Morning Report
Fonterra Shareholders Fund (NZX: FSF) Fonterra provides Milk Price, earnings and Q1 update
Kiwi Property Group Limited (NZX: KPG) Signs Sale and Purchase Agreement with IKEA