The CreditorWatch monthly Business Risk Index is the best monitor we know. One that tells it like it is, rounds up telling data on the state that business in Australia is in.
There’s original thinking and thoughtful writing to compose and present the CreditorWatch monthly. Tell your friends about the Business Risk Index.
The BRI is not a leading indicator. But all the data is recent and up to date and is so good it might as well be regarded as ‘right now’ data.
The CreditorWatch data this month is discouraging for the perennial optimists.
Australia is either well into a business recession or the country soon will be in such a mess.
The average value of invoices held by businesses has fallen 49.9 per cent over the year to June 2024 reflecting a drop in order values as businesses are forced to wind back inventory due to higher prices and declining demand in the economy.
“Compounding this problem is rising invoice payment defaults, which have been trending up since mid-2021. This indicates that businesses are finding it increasingly difficult to pay their suppliers despite lower order values.”
Another of CreditorWatch’s key metrics, the business failure rate, is also deteriorating with an 8.8 per cent increase across all industries over the past 12 months.
Things are dire. Clear and simple.