Insolvency Insights | Analysis of ASIC's latest External Administration Appointments Statistics From December 2014 & January 2015
During calendar year 2014, a total of 8,794 companies entered external administration across Australia, an 18.7% fall on the 10,821 companies that entered external administration in 2013.
An analysis of the most common types of external administration for 2014 showed there were 960 fewer court wind-ups, 530 fewer creditor wind-ups, and 329 fewer voluntary administrations than in 2013. However, there were 499 more controllers (except receiver or managing controller) appointed than in 2013.
In a surprise move, the Reserve Bank of Australia (RBA) lowered rates to 2.25% in February 2015 and continued to hold rates at this level subsequent to its March meeting. This despite the weak economy and expectations that further easing would be applied by the Bank.
Australia’s residential property market has been in focus recently, especially as the RBA cited strong house prices as one of the reasons interest rates remained at 2.25%. We examine this and other market forces impacting the property market in this edition of Insolvency Insights.
Meanwhile, the cut in rates has led to a strong lift in consumer sentiment with the Westpac Melbourne Institute of Consumer Sentiment reporting an 8% increase month-on-month in February.