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In an “ominous turning point” for the Australian economy, data from CreditorWatch shows that the number of Australian companies appointing external administrators rose by 46% year-on-year in July.
There has also been a 50% increase in companies going into administration since April, with food, recreation and telecommunications firms hardest hit:
Anneke Thompson, chief economist at CreditorWatch, said the rises are being driven by an ongoing return to pre-pandemic insolvency rates and Australia’s rapidly souring economic outlook.
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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.
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