Insolvency Statistics – September 2014
It’s hard to write a commentary on current business markets in NZ without mentioning the Election. As always, an election overshadows everything else as businesses keep a close eye on the promises of, and policies being promoted by, the various political parties. Who gains power and what impact their changes in policy will have on business in NZ is difficult to predict.
The Reserve Bank kept the OCR steady with the promise that it will remain the same for a while while it assesses its next steps. Commentators are still suggesting further increases but over a longer period of time.
In anticipation of the OCR announcement, the Kiwi dollar held steady at a seven month low. The Kiwi is now predicted to drop with some suggesting it could drop below 80c by this time next year.
With a modest rise in building consents, it seems clear that the building industry growth will remain with us for a while yet. With Auckland Council and the Government jointly announcing a further 8000 homes in a further Special Housing Area, it seems clear that the government is keen to see the growth continue.
Our cousins overseas seem to be having a harder time of it than us. In the UK, there has been a run on the Sterling as the vote for Scottish Independence looms. Many businesses are in panic mode and making contingency plans to move south if the vote for independence is successful. The United Kingdom has endured for 300 years but will it continue? Nobody seems to know the answer.
Meanwhile, in the USA, the markets took a small dive as investors unloaded unwanted stock. With the US economy in its present state, it seems hard to imagine they can afford another war in the middle east. However, it seems clear that ISIS will not be going away anytime soon.
On the technology side, Apple finally released their new iPhone 6 and iPhone 6 Plus models along with a new iWatch. Underwhelmed? Probably.
May, June & July Comparison of
Insolvency Appointments 2011, 2012, 2013 & 2014
What the figures are showing?
- There were 201 insolvency appointments in August 2014 which is a decrease of nearly 25% on August 2013 and over 30% down on August 2012. There were 16 receivership appointments, 184 liquidations recorded and 1 administration.
- Year to date insolvency appointments for 2014 were 1,680. This is still down on previous years. Liquidations accounted for 1,571 of those appointments.
- Applications made to the High Court to liquidate companies totalled 115 for August 2014. Applications made between January and August 2014 totalled 848 of which 595 were made by the IRD.
Year to Date Comparison of Insolvency Appointments 2011 to 2014