Simplicity chief economist Shamubeel Eaqub said the rate of insolvencies was double what it was at this time in 2023.
“It’s consistent with what I would expect and I’d expect this to continue.”
He said the coming months would be tough for many businesses, if they were not in hospitality or retail.
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Cashflow was a big problem for many businesses, he said. “When they run out of cash is when all the problems really come to the surface and you tend to see that spilling over into the numbers for February, March and April.”
Economic pain was still escalating and many businesses were facing lower margins because they could not raise prices, and were selling less, he said.
“From a historical perspective…
