Australian insolvencies hit a record high in March, according to the latest data released by the corporate regulator. In total, 1131 businesses went bust in the month, which was the largest number since ASIC started collecting these statistics in 1999. Intensifying labour and input costs are a killer for companies with little pricing power.
Seasonally adjusting the data, we get the same result: corporate failures hit a 25-year high despite the fact the economy continues to expand and maintained a historically very low 3.9 per cent unemployment rate in March.
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