Lagged recession effect hits cashflow now
Lagged recession effect hitting business cashflows now
Nov 5 (BusinessWire) - The lagged impact of slower and defaulting payments between businesses is showing up now, just as the recession is ending, says credit reference agency Veda Advantage.
"Business always lags about 18 months behind consumers when it comes to a downturn in the economy and they are hitting tough times now.," said Veda managing director John Roberts. "The recession may technically be over, but the bad times still have to feed through the economy and businesses will be feeling it well into next year. The tough times aren't over yet."
Veda releases no raw figures, so the
significance to the economy of changes in the indicators it
reports can be difficult to judge. However, it reports a
49.5% increase in commercial defaults in the year to
October, compared with the same 10 month period last
year.
Consumer defaults on loans and credit was much
less dramatic, up 4.29% over the 10 months to October,
compared with the same period last year.
Applications for credit cards and hire purchase are well
down, although mortgagement applications are up by one-fifth
in the year to date, compared with last year, led by "baby
boomers" in the 44 to 62 age group, the same group to show
the largest rise in personal credit defaults.
(BusinessWire)
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