Kiwi households and businesses remain under pressure despite easing interest rates
- Business credit defaults are up 8% year-on-year, although the rate of growth continues to ease.
- Consumers reported in arrears rose to 12.41% of the credit-active population in July, 1.3% higher than a year ago.
- Mortgage arrears improved to 1.38% in July, with 21,200 home loans past due – 400 fewer than the previous month.
- Financial stress continues to weigh heaviest on the younger generation. However, financial hardship cases declined for the second month running.
- The Real Estate sector has experienced increased liquidations when compared to last year. High interest rates and weak migration have resulted in a decline in property sales. Investors have also been impacted as rental yields remain under pressure.
As New Zealand is heading into spring, there is no doubt that while some indicators are improving, many Kiwi households and businesses continue to face financial challenges.
About: Centrix is New Zealand’s credit bureau. We release our Credit Indicator Report each month, analysing New Zealand’s credit market, focusing on emerging trends and their possible impacts.
Our Data Sources
We source our data from a wide range of sources, including all of the major trading banks, finance companies, Buy Now Pay Later (BNPL) providers, telcos, utility providers, and other businesses. We are proud to have the most comprehensive account payment data and credit information – covering 95% of New Zealanders, as well as most credit-active companies.
If you are interested in learning more about the information we collect and how it might be of use to you, please don’t hesitate to contact me.