On the consumer front, the report highlights that approximately 458,000 New Zealanders are currently behind on payments, a slight decrease of 3,000 from the previous month but still 3.5% higher than last year.
Mortgage arrears have risen by 13% year-on-year, with 21,200 loans now overdue. At the same time, mortgage applications have seen a 4% uptick, hinting at cautious optimism in the housing market. Consumer credit demand overall fell by 2% from last year, but credit card inquiries rose by 13%, showing a recovery in consumer interest for short-term credit options.
However, financial stress is not limited to individual consumers. The report reveals an increase in credit defaults across business sectors, with an average rise of 16% year-on-year.
“Turning to the business credit side of things, a sombre picture emerges,” McLaughlin said, citing an especially high impact on transport and construction, with defaults rising 35% and 33%, respectively.
The hospitality industry has also taken a substantial hit, seeing a 34% surge in company liquidations over the past year, with cafes, restaurants, and pubs particularly affected. In total, business liquidations are up 25%, reaching the highest monthly count in a decade.
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