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Speaker 1: The economy time or insight into where we're at. Centric

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Speaker 1: data shows people more than ninety days behind on payments

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Speaker 1: has fallen. In May two hundred and sixty nine companies

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Speaker 1: were insolvent. Though that's not good. Number of people in

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Speaker 1: consumer areres has grown or rears has grown about sixteen thousand.

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Speaker 1: The Centrics managing director Keith McLaughlin back, Well, this Keith,

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Speaker 1: very good morning to you.

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Speaker 2: Good morning mikeel.

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Speaker 1: In total issye better or worse or treading water?

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Speaker 2: Well, I think on the consumer side of it, it's

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Speaker 2: treading water. I don't think we're seeing the dramatic arizal

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Speaker 2: forward styles or rares to concern, but I think we're

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Speaker 2: concern really at the moment is what's happening to the

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Speaker 2: small to medium sized business sector that suffering a little

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Speaker 2: bit from lack of sales coming through the front door.

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Speaker 2: And as a result of that, we're seeing liquidations starting

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Speaker 2: to rise or continuing to rise.

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Speaker 1: Those liquidations in comparison to you know, whatever you want

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Speaker 1: to compare it to the GFC whatever, How bad is

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Speaker 1: it historically?

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Speaker 2: Well, that's certainly. I mean, if you look at we

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Speaker 2: were ten years ago, it's mean teen years since We've

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Speaker 2: seen the level liquidations that we are at the moment

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Speaker 2: in the month of May, so it's unusually high. And

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Speaker 2: the trend is increasing, which is of more.

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Speaker 1: Concern any sense of where that trend goes. Are we

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Speaker 1: going to peak shortly or we just don't know?

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Speaker 2: I think on the company side, I think we've probably

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Speaker 2: got a few more amounts of pain to come. I

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Speaker 2: think consumers are now getting the head around what their

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Speaker 2: household budget looks like, and consequently, discretionary spending has fallen away,

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Speaker 2: which means that businesses are suffering from cash flow from

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Speaker 2: the lack of sales or if you're a builder, people

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Speaker 2: are differing decisions about buying your cars, about extending their property.

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Speaker 2: So I think that's having an impact on businesses and

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Speaker 2: I can see that nothing to really change that in

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Speaker 2: immediate future.

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Speaker 1: Explain the consumer side of the equation are in telco

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Speaker 1: and mortgage, There, to my mind, two completely different things.

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Speaker 1: If you can't pay your phone bill, something's gone horrifically wrong.

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Speaker 1: The mortgage is a whole different thing, isn't it.

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Speaker 2: Well. I think there tends to be a prioritization of

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Speaker 2: what people pay. For example, I'll mortgage first they'll pay

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Speaker 2: a second things like your phone is probably one of

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Speaker 2: the last ones that.

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Speaker 1: You paid, So what are you saying it. It's like,

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Speaker 1: it's not the end of the world. You could probably

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Speaker 1: scrape together ninety bucks or one hundred and twenty bucks

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Speaker 1: or whatever the case might be. My point being, if

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Speaker 1: you can't pay the mortgage, you're like, you're in the crapper,

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Speaker 1: aren't you, as opposed to your phone, which you can

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Speaker 1: sort out.

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Speaker 2: Yeah. Yeah, But I think we've seen a significant increase

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Speaker 2: in what we placify as hadounce, which is where that

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Speaker 2: borrow has approached the lender and said, look, I'm really struggling,

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Speaker 2: and consequently of either restructured or the third payments on

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Speaker 2: the mortgage. So I think, you know, we've seen more

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Speaker 2: cooperation between lender and borrow to avoid looks like mortgage

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Speaker 2: use sales. You know, it's not the end of the world.

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Speaker 2: And I think it's from a consumer side, people manage

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Speaker 2: from your spending that they could try to control their

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Speaker 2: budget's a lot better and I can I can see

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Speaker 2: that's plateau, so it's not deteriorating, which it's really good

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Speaker 2: to see.

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Speaker 1: Good what's the demand for credit picture or we are after money.

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Speaker 1: Can we get money as it? Desperation is ad optimism

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Speaker 1: driving that. What's going on well.

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Speaker 2: An increase in cred demand for home leading so it's

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Speaker 2: starting to come back into action. At the moment, we're

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Speaker 2: seeing probably more activity in the housing market and let's

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Speaker 2: lead into a little bit of an increase as far

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Speaker 2: as leaning on the housing market is concerned. Businesses are

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Speaker 2: borrowing a little more than they did, probably to try

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Speaker 2: and make me meet. And we're finding things like personal

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Speaker 2: loans are reasonably strong and again that's probably to balance

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Speaker 2: the household about it, but discretionary spinning like motor vehicles

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Speaker 2: that it's falling away quite dramatically.

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Speaker 1: All right, good inside as always, Keith appreciated very much.

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Speaker 1: Keith McLaughlin, who's these centrics managing directly. Still for more

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Speaker 1: from News Talks, the'd be listen live on air or

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Speaker 1: online and keep our shows with you wherever you go

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