Insolvency Insights - Analysis of ASIC's April 2013 External Administration Appointments Statistics
941 companies entering external administration during April, the highest on record for the month since ASIC statistics were made available in 1999.
With 3,447 companies entering administration so far in 2013, total insolvencies remain slightly behind the same period last year (Jan to April 2012: 3,524), but well ahead of the same time for 2008 to 2011.
Economic data subsequent to April has indicated ongoing softness in industries, including construction and manufacturing.
The falling Australian dollar may provide a significant boost to sectors competing with cheap imported goods, such as retailers and manufacturers, while exporters should also benefit. We expect insolvencies for the remainder of the year from those sectors to be dependent on the Australian dollar remaining below parity to the US dollar and continuing to fall.