Crippling interest rates and sky-high prices of everyday items, from a bag of concrete to a cup of coffee, are behind record business insolvencies in Australia, research shows.
In the year to May, insolvencies reached a record high of 1378, a 38 per cent increase in the rate of business failures.Electricity, gas, water and waste services topped the list of industries by rate of increase in insolvencies, with an 89 per cent increase year-on-year, followed by education and training and mining .
The credit reporting agency survey also found the food and beverage services sector was the most vulnerable industry, with a 7.54 per cent failure rate, ahead of administrative and support services and arts and recreation services .The construction industry had the highest proportion of late payments, with 10.46 per cent of businesses having payments that are 60 or more days overdue.
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