As expected, our regular report on debt in the channel from CreditWorks (www.creditworks.co.nz) this month confirms the last issue’s “steady as she goes” forecast which came to fruition with little change in both ageing and overall debt during September.
Slight easing in DSOs
In terms of DSOs (see graph above), Building Materials (falling to just under 60 days) and Glass showed the most – albeit slight – improvement, with just a slight easing in the overall DSO ageing.
Debt levels level off
Debt levels, while still up on 2016 figures, levelled off, and even displayed a small decline. The inclement weather experienced in most major centres throughout September perhaps impeded building sector growth somewhat.
Activity and debt levels to rise
“Nevertheless,” says CreditWorks’ Alan Johnston: “with summer now truly on its way, and the longer days, I would expect to see a further ramping up of activity and debt levels over the next few months.”