Economic distress indicators – May 2024

KPMG has released its latest EDI stat pack for May 2024, which presents a sluggish Australian economy, with a persistent inflation problem and elevated insolvency levels.

Insolvency appointments continue to remain well above pre-COVID levels with insolvencies peaking in March at more than 50 percent higher than pre-COVID levels. Construction and accommodation and food services industries continue to drive the greatest number of company failures, accounting for nearly 27.7 percent and 15.2 percent in the financial year to date respectively. ASIC forecasts the number of companies entering external administration in FY24 will be greater than 10,000 by EOFY,...

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Authors: Gayle Dickerson

Published Date: 13 May 2024