Financial outlook brighter for businesses as insolvencies fall
A rebound in Australia’s overall economic performance has been reflected in the fall in insolvencies experienced in the December 2016 quarter.
According to the latest figures from the Australian Securities and Investment Commission (ASIC), the number of companies entering external administration (EXAD) in the December quarter 2016 fell a significant 27.3 per cent year-on-year.
Instances of insolvency also fell by 16 per cent in December 2016, compared to the same month the previous year.
The fall in insolvencies occurred in step with a rebound in GDP – another sign that the economy is in an improving position.