Insolvency Statistics – July 2014
New Zealand recorded a $1.4 billion current account surplus in the March quarter according to NZ Statistics. The results were strengthened by meat and dairy exports. Fonterra seem keen to spend more money with an announcement that a new dairy hub costing $342m would be developed in China. This might not impress smaller farmers who, with world dairy prices and payouts low, will be struggling.
Meanwhile, the New Zealand Dollar has hit a 13 month high against the Euro with fears over Portugals bank debt causing a little panic in Europe. Certainly, parts of Europe are still struggling to recover. The Kiwi also remains strong against the Aussie.
The US Federal Reserve has also announced it will wind back its bond purchases ending their long five year stimulus in October. Confidence is still not strong however, with concerns raised by a number of policymakers over strong stock exchange results with some suggesting that brokers and investors are not being cautious enough.
Has the housing bubble burst? Possibly, but it would appear merely to have calmed slightly with buyers being slightly more cautious and seeking to obtain that elusive bargain. A house price slump appears to remain a risk to economic growth according to NZIER.
It certainly will be interesting to see how the political parties will position themselves on economic issues in the run up to the election. Whether or not well see any radical change remains to be seen.
April, May & June Comparison of
Insolvency Appointments 2011, 2012, 2013 & 2014
What the figures are showing?
- There were 194 insolvency appointments in June 2014 which is 16% down on June 2013 and 30% below the 2011 peak. There were 8 receivership appointments and 186 liquidations recorded.
- Year to date insolvency appointments for 2014 were 1,179. This is down on previous years. Liquidations accounted for 1,112 of those appointments.
- Applications made to the High Court to liquidate companies totalled 109 for June 2014. Applications made between January and June 2014 totalled 610 of which 425 were made by the IRD.
Year to Date Comparison of Insolvency Appointments 2011 to 2014