Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Dun & Bradstreet data shows decrease in debt referrals




MEDIA RELEASE

¬Wednesday, 12 December 2012

New Year Resolutions Set to Pay Off for New Zealand

Dun & Bradstreet data shows decrease in debt referrals

Kiwis who resolved to make 2012 the year to address their debt remain on track according to the latest debt referral data released by Dun & Bradstreet today.

Across the two islands, both the total value and number of debt referrals have declined across the 12-month period to the September 2012 quarter, although the traditional Christmas period spending splurge may test New Zealanders’ debt commitment.

The total number of debt referrals received by Dun & Bradstreet has declined by 25 per cent overall, with the total value of those debts falling 12 per cent during the same period.

“Given the general financial pressures that New Zealand households have been under, it’s encouraging to see that the volume and level of debt coming into Dun & Bradstreet have been coming down,” said John Scott, General Manager of D&B New Zealand.

“While not enough to drop below the early 2011 levels, these figures suggest that New Zealanders have been addressing their debts and are taking a more cautious approach with their financial position.

“We will be keen to see if that trend holds for the final quarter of the year, as our latest Consumer Credit Expectations Survey indicated that more than two-thirds of New Zealanders were less likely to spend on non-essentials over the Christmas period compared to the same time last year,” Mr Scott said.

Across the country, Christchurch experienced the greatest fall in debt referrals (34 per cent) for the 12 months to the September quarter, with Wellington decreasing by 17 per cent.

The most populous city, Auckland, saw referral volumes for its residents drop by the smallest amount nationally, with a 14 per cent decrease across a fairly volatile 12 months. Auckland also bucked the national trend and registered an increase in the value of its debt referrals over that period.

According to Stephen Koukoulas, Dun & Bradstreet's economic advisor, the decline in debt referrals across the past 12 months is part of a broader set of improving economic data to come out of New Zealand.

“High debt and low savings have been unwelcome characteristics of New Zealand’s household sector for many years, however, the recent trends in the latest debt referral data suggest a step in the right direction,” he said.

“The general economic picture in New Zealand remains solid, with economic growth looking to pick up during 2013 helped by very low interest rates and signs of a buoyant housing market. That said, we still see some caution from consumers as they increasingly look to scale back on their debt positions, especially with the unemployment rate still relatively high,” Mr Koukoulas added.

Amid the positive signs for New Zealand’s economy, the data collected by Dun & Bradstreet showed that the majority of debt is still being carried by the country’s younger generations. Debtors aged 25¬–44 years accounted for approximately 50 per cent of the debt referrals made in the third quarter of 2012, while those aged between 18–24 years accounted for 23 per cent.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news