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Speaker 1: Centric data.

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Speaker 2: This is for July month on months shows consumer areas

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Speaker 2: how many are behind on payments falling by nine thousand

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Speaker 2: to four hundred and fifty six thousand. So that's good,

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Speaker 2: but company liquidations are up. Monica Leces, the Centric's chief

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Speaker 2: operating officer.

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Speaker 1: Good morning, Monica mo Ryan.

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Speaker 2: Let's start with the bad news first, the liquidations three

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Speaker 2: hundred and eighty three liquidations for the second quarter.

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Speaker 1: Where are they? What types of companies?

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Speaker 3: Yeah, look, I think businesses have had a really rough rise,

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Speaker 3: you know if you think about COVID and the impacts

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Speaker 3: of that head on them. And then now obviously we're

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Speaker 3: in this recession where consumers are doing the right thing

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Speaker 3: and coming back spending, which we're seeing the results of

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Speaker 3: the consumer areas front. But what that does mean is

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Speaker 3: that businesses are impacted because people just aren't out there

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Speaker 3: spending money like they would have been otherwise. So naturally

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Speaker 3: we're seeing a larger number of these liquidations fall in

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Speaker 3: the Auckland region because of course that's our biggest business

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Speaker 3: sector in the country, and it's impacting the traditional market

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Speaker 3: seed expects, so construction, hospitality, and retail.

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Speaker 1: Okay, so that's the bad news.

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Speaker 2: The liquidations going out, But what about the consumers getting

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Speaker 2: on top of their debt? But you know, is that

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Speaker 2: significant the drop of nine thousand to four hundred and

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Speaker 2: fifty six thousand.

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Speaker 3: We have seen some volatility this year from months to months,

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Speaker 3: but the really pleasing news is that the overall trend

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Speaker 3: is trending down. So I think that that's really positive.

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Speaker 3: I mean, we're talking about four hundred and fifty six

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Speaker 3: thousand New Zealanders in some state of areas, and eighty

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Speaker 3: two of the eighty two thousand are in the linquency,

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Speaker 3: so ninety days or more overdue. So it's quite a

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Speaker 3: low number by comparison to the population. So overall New

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Speaker 3: Zealanders are doing a quite a good job of managing

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Speaker 3: the financial position.

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Speaker 2: What do you read into the five percent increase in

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Speaker 2: credit card applications for July? What does that tell us?

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Speaker 2: Are people poised to I don't know, get it new

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Speaker 2: couch or is it for basic things to fix a car?

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Speaker 2: What's the general vibe there?

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Speaker 3: I don't really have that's behind what is ending that on?

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Speaker 3: But I can tell you that the Responsible Lending Code

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Speaker 3: that directs lenders on how they should be assessing individuals

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Speaker 3: applies protections to consumers. That gives us some comfort that

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Speaker 3: you know they can actually afford to pate that back,

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Speaker 3: so I think they'll be okay.

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Speaker 1: Monica. Thank you.

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Speaker 2: That's Monica Lacey, the Centric's chief operating officer.

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