Insolvency Statistics – August 2014
Market Commentary
Dairy prices are back in the news and they aren’t making NZ farmers happy. Prices are dropping due to increased production overseas (ironically on the back of high prices last season) and from China stockpiling. So, all of a sudden, the world is over supplied. Perhaps, Fonterra should consider investing more in promoting specific brands rather than just selling milk solids on the commodity market.
The Reserve Bank took the expected step of raising the OCR again with further increases expected this year. Some slowing of the house market seems to have occurred in certain areas but a crash appears unlikely. Indeed, according to QV, prices have risen again. Certainly building consents remain high with areas outside of Auckland and Christchurch leading the way. It was reported that consents in the Bay of Plenty have topped $50m for the month of July. That’s an incredible figure and shows the pace of development in Tauranga.
What remains interesting is the effect the OCR will continue to play on the Kiwi dollar. Higher interest rates certainly make the Kiwi attractive to overseas investors when interest rates in Europe and the USA are so low. The only significant losers in this scenario are the manufacturing and export industry. However, most smaller manufacturers in NZ seem to have given up and started importing product from China. The larger manufacturers are mostly stable and capable of managing and absorbing fluctuations in exchange rates. So is it all that bad for NZ?
There was more good news for our “Rock Star” economy when the quarter to June unemployment figures were released. Levels of unemployed dropped to 5.6% in the three months to June. The Canterbury region saw the lowest levels of unemployment which was undoubtedly fuelled by the rebuild. However, that seems to have slowed with the CBD not really being tackled yet.
Finally, on the technology side, Apple finally announced the date for its next iPhone release. The 9th of September will see the launch of a bigger, better iPhone. Will it give Samsung a run for its money? Who knows!.
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May, June & July Comparison of
Insolvency Appointments 2011, 2012, 2013 & 2014
What the figures are showing?
- There were 300 insolvency appointments in July 2014 which is an increase of 40% on July 2013 and 55% up on June 2014. There were 20 receivership appointments and 275 liquidations recorded and 5 administrations.
- Year to date insolvency appointments for 2014 were 1,479. This is still down on previous years. Liquidations accounted for 1,387 of those appointments.
- Applications made to the High Court to liquidate companies totalled 123 for July 2014. Applications made between January and June 2014 totalled 733 of which 509 were made by the IRD.
Year to Date Comparison of Insolvency Appointments 2011 to 2014
