Australian companies continue to suffer from negative cash flow: the result of the cost of meeting new orders on the one hand and delayed customer payments on the other.
Crédito y Caución views the sector as a whole as favourable. However, the various subsectors are influenced by vastly different factors so we take a more specialized view at that level.
Following the previous trend, Crédito y Caución again sees a decrease in the Expected Default Frequency of all the economies surveyed.
Crédito y Caución does not anticipate a significant shift in the value or number of insolvencies in the construction sector in United States.
The Crédito y Caucións outlook is for tepid growth as the USA moves forward. Structural issues arising from the collapse of the residential housing market still persist.
Corporate insolvencies decreased 9.6% year-on-year in the first nine months of 2010, suggesting an overall decrease in business failures for the year of more than 10%.
With the exception of tobacco, Crédito y Caución has noticed a slight worsening in payment behaviour in the food industry in Belium over the last couple of months.
Payment behaviour is excellent, with 80% or more payments made by due date. The insolvency rate in this sector is quite low compared to other industries.
Crédito y Caución expects corporate insolvencies to rise 5%, to around 9,900, in Belgium this year and to decrease 5% next year. Payment duration has reduced.
Crédito y Caución expects a further increase of corporate insolvencies in the coming months, with construction, food, consumer durables, IT, and retail sales the main victims.
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