Insolvency Statistics – June 2014
Market Commentary
World dairy prices have hit a 15 month low with Fonterra signalling a forecast milk price for 2014/2015 of NZ$7/kg and that, it has warned, might be revised further downwards. This was gloomy news for farmers indeed and will no doubt have them questioning why Fonterra has stated it has absorbed that unusual spike in dairy prices over the last year and not passed the benefit on to hard pressed farmers.
Meanwhile, the New Zealand Dollar has hit a 6 month low against the Aussie and has been under pressure from the drop in the world dairy price, hitting a 3 month low against the US Dollar. NZX investors seem to be reassessing their portfolios which has lowered a number of significant share prices.
House price growth has undoubtedly exceeded wage growth over the last year or so with regional fluctuations that nobody seems to be able to contain. With the OCR increase, buyers appear more cautious but the banks, on the other hand, have been bringing more competitive mortgage options to the market. This appears, at least for the time being, to have allowed the property market to remain buoyant. The NZIER are, however, suggesting a housing slump would damage NZ’s economic growth.
Building consents remain high with more houses being built at a pace not seen since 2002. NZIER statistics show a 15% increase in the 3 months to March 2014. It will be interesting to see how long this pace can be kept up. Certainly, it is being led by Auckland and Christchurch markets.
In the USA, Apple announced new software and the market eagerly awaits the release of more information on new products. A rumoured new iPhone with a bigger screen and a watch sound interesting. Although this commentator is not convinced a wearable phone sounds like a good idea!
March, April & May Comparison of
Insolvency Appointments 2011, 2012, 2013 & 2014
What the figures are showing?
- There were 268 insolvency appointments in May 2014 which is comparable to previous years but well below the 2011 peak. There were 21 receivership appointments, no administrations and 247 liquidations recorded.
- Year to date insolvency appointments for 2014 were 985. This is down on previous years. Liquidations accounted for 926 of those appointments.
- Applications made to the High Court to liquidate companies totalled 138 for April 2014 which is back up to its usual level after last months low number. Applications made between January and May 2014 totalled 501 of which 349 were made by the IRD.
Year to Date Comparison of Insolvency Appointments 2011 to 2014
