08/03/2017 - 06:06

Better insolvencies data for January

08/03/2017 - 06:06

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There was a slight dip in the number of Western Australian businesses entering administration in January compared to the same month in 2016, according to the latest data from the Australian Securities and Investments Commission.

It was a better month in insolvencies data. Photo: Attila Csaszar

There was a slight dip in the number of Western Australian businesses entering administration in January compared to the same month in 2016, according to the latest data from the Australian Securities and Investments Commission.

With 58 businesses hitting the wall, January external administrations were around 12 per cent fewer than January 2016, while nationally, administrations were 14 per cent lower at 396 businesses.

December 2016 quarter data was also an improvement for Western Australia.

In that three month period, 201 businesses entered external administration, a fall of 17.6 per cent on the same timeframe in 2015.

National data was also improved, with administrations for the December 2016 quarter of 2016 at 1,817, down 27.3 per cent on the December quarter 2015.

It is the third piece of positive economic data for Western Australia in a week, including the most recent Gross Domestic Product numbers.

The December quarter figures showed the state’s economy snapped a five quarter streak of shrinking state demand to grow 0.4 per cent.

Retail spending data for January was another positive, increasing by 0.3 per cent in seasonally adjusted terms.

Breakdown

Breaking down administrations by industry, construction was hard hit, with 13 such Western Australian businesses going bust during January.

It takes to 186 the number of construction businesses that have gone under in the past 12 months, out of around 1,513 nationally.

The retail trade, transport postal and warehousing, utilities and accommodation and food services sectors all had four insolvencies in WA in January.

More will be added to those ranks in February, with Sorrento restaurant ZingCafe and Northbridge nightclub The Shed both listed as insolvencies.

The manufacturing and mining sectors featured too, with three appointments each in the month of January, while ICT, healthcare and education were all unscathed.

ASIC additionally provides a national breakdown by appointment type.

Court ordered wind-ups and creditor wind ups accounted for more than 80 per cent of national administrations in January.

Creditor-driven wind ups alone represented more than 46 per cent of wind ups, or around 180 businesses.

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