Insolvency Statistics – June 2015
Building consents are up on previous years for both commercial and residential new builds. Things are looking good for the building industry, at least, in the main cities. However, the debate continues to rage over increased house prices and the risks to the economy. Real estate agents are suggesting that, wherever possible, people are endeavoring to leave the big cities for cheaper housing in more rural areas which makes sense.
Unfortunately, with most of the jobs in the main cities it seems we must get used to either a longer commute from our cheaper housing on the outskirts of town or move into more high density housing in the city centres. As neither of those options seem to appeal to most Kiwis, the only outcome is increased housing costs as we fight for a decent sized house near to town.
Retail spending was up in May according to Statistics NZ with an increase in card transactions. It was noted that hospitality and apparel sales were relatively static which suggests consumers are still reigning in certain discretionary spending habits. The Warehouse reported a 5% increase in sales while Postie Plus seems nothing but under pressure.
In the currency market, the NZ dollar made some gains in the run up to the Reserve Banks decision on the OCR. The economists were split on whether a 25 basis point drop will occur in the face of zero inflation and a dairy sector in difficulty. The announcement made today by the Reserve Bank Governor of a 25 point cut then hit the Kiwi dollar quite quickly. The banks were fast to reduce their mortgage rates which will, however, add fuel to the fire where house prices are concerned.
On the technology front, Apple is planning on making a few changes to improve the performance of its operating systems and will be moving to music streaming with its iTunes replacement Apple Music. Microsoft, on the other hand, is building up to the launch of Windows 10 which, reportedly, takes the best bits of both Windows 7 and Windows 8. Whats more, it will be a free upgrade for Windows 7 and 8 users. An interesting move by them which may solidify their market position.
February, March & April Comparison of
Insolvency Appointments 2011, 2012, 2013, 2014 & 2015
What the figures are showing?
- There were 197 insolvency appointments in May 2015 which is the lowest May figures for years. There were 6 receivership appointments, 189 liquidations recorded and 2 administrations.
- The total number of insolvency appointments for the year to date were 1019 which is still up on 2014 (985) but lower than previous years. It is difficult to predict the peaks and troughs of insolvency appointments. The pattern is akin to a roller-coaster ride.
- Applications made to the High Court to liquidate companies totaled 113 for May 2015, 81 of which were made by the IRD. May has, historically, been a month of significant activity in applications and this month is no exception.
Year to Date Comparison of Insolvency Appointments 2011 to 2015