Insolvency Insights | Analysis of ASIC's External Administration Appointment Statistics for February 2015
Similar to past years, the number of companies that entered into external administration in Australia during February increased when compared to January records, with 655 insolvencies reported in February 2015 versus 484 in January 2015.
The Reserve Bank of Australia (RBA) cut the cash rate by 25 basis points in February to a new record low of 2.25%. This cut contributed to a boost in consumer sentiment as recorded by the Westpac Melbourne Institute Index of Consumer Sentiment, which reported an 8% increase month-on-month from 93.2 in January to 100.7 in February. This is also the highest level reached by the index since January 2014. On the other hand, however, the RBA’s rate cut did not have the same desired effect on business confidence, which showed signs of deterioration in the month according to the National Australia Bank's survey.
In this edition of Insolvency Insights, we focus on trends in the Australian mining sector which has been negatively impacted by falling commodity prices and a downturn in global demand.
Lastly, in our outlook for the market, we note that job advertisements fell in March for the first time in nine months, according to ANZ data.