Construction sector leads the way as monthly liquidations hit a nine year high, credit bureau Centrix says

March saw the highest number of monthly business liquidations in nine years with construction companies leading the way, credit bureau Centrix says.

Centrix's April Credit Indicator shows 238 liquidations in March, the most for any month since 299 in March 2015.

"The tough economic climate continues to impact Kiwi businesses across the country. In March 2024, defaults climbed across all sectors except for hospitality," Centrix says.

March liquidations included 56 construction companies.

Centrix attributes the rising number of construction company liquidations to high interest rates and weak demand continuing to impact the pipeline of work for both home renovations and new builds.

Centrix says 122, or 25%, of companies liquidated during the March quarter were from the construction sector.

There were 486 construction company liquidations during the March 2024 year. That compares to 415 in the March 2023 year, and 262 in the March 2022 year.

"Liquidations were up across the board, with retail trade (+57%), transport (+43%) and the property/rental sectors (+20%) hit the hardest.
There were over 230 companies placed into liquidation during March 2024, the highest monthly total recorded since March 2015," says Centrix in its April Credit Indicator.