Insolvency Insights - Analysis of ASIC's Latest External Administration Appointments Statistics from August 2014
The latest ASIC figures reveal a total of 5,994 companies have entered external administration in the first eight months of 2014, down 18% on 2013, and the lowest level for that period since 2008. The data also showed external administration appointments fell slightly month-on-month in all states, except for South Australia and Tasmania.
Consumer sentiment rose in August to reach levels not seen since before the May Federal Budget. Data from the Westpac Melbourne Institute showed the Index of Consumer Sentiment increased by 3.8% in August to 98.5. Westpac's Chief Economist Bill Evans attributed the boost to the scrapping of the carbon tax and the potential for a restructure of the budget led by resistance in the Senate.
Additionally in this issue, we discuss strains on the community pharmacy industry, which has been effected by changes in the Pharmaceutical Benefits Scheme, the relaxing of ownership and location laws and continued growth of large discount pharmacy chains leading to an increase in competition. All these factors are having a negative impact on the bottom line of pharmacies across the country.
Performance indices data compiled by the Australian Industry Group indicates that concern over the impacts of the strong Australian dollar on the manufacturing sector and trading conditions continue to weigh. Meanwhile, the national construction industry continues its growth momentum, hitting a nine-year high in September.