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The annualised rate of 371 corporate insolvencies was the highest since 2013. Eaqub said the rate of court-administered insolvencies was running at about 35 a month, similar to during the Global Financial Crisis. "This recession is extremely unusual," Eaqub said. "Normally you see job losses, real incomes being hit but profits by and large go sideways. "This time we are seeing an absolute plunge in business profits. In absolute terms, I haven't seen this in any of my data going back to the early 2000s. We are just at the beginning of the recession in many ways." Because of immigration and other factors in the aftermath of the pandemic, the recession had not started biting until the last six months. Employers had so far cut back on capital expenditure and hiring, and were wearing the downturn via reduced profits, he said. "We haven't seen the pain of businesses actually cutting back on spending - it's been postponement so far, rather than running out of money. "That's why we're not seeing a decline in enterprise counts yet - but now businesses are running out of cash, that's what the profit margins are telling us.
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