Business defaults boom, personal insolvencies bust

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More contradictory indicators of the Australian economy have been released, with business payment defaults surging in 2019:

The number of businesses defaulting on payments jumped 29 per cent in 2019, pointing to an increase in insolvencies in the year ahead…

“Payment defaults are one of the leading indicators and these figures show many small and medium sized businesses are struggling to pay creditors,” CreditorWatch chief executive Patrick Coghlan said.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.