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

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news