H.P. sales sink

Press, 8 December 1988, Page 27

H.P. sales sink

PA Wellington Hire purchase sales remained dismal in the September quarter, with advances sinking towards a five-year record low.

Consumers also continued to pay off hire purchase debt for the fourth successive quarter. The amount paid off — $148.6 million — is possibly the largest recorded in any quarter. Statistics Department figures released yesterday show hire purchase advances in the September quarter were $259.2 million.

This is 35.5 per cent down on advances made in the same period a year ago before the recession deepened in the aftermath of the October, 1987, sharemarket crash. Advances have dropped consistently in the four quarters since the crash. They are now at their

lowest levels since $223.8 million was advanced in September, 1983, during the last recession in the New Zealand economy. The figures confirm the poor trading some retailers have experienced in the past year as mounting redundancies resulting from industrial restructuring, company failures and consumer caution have slashed the spending dollar.

The total amount owing under hire purchase agreements at the end of September was $1932 million, 13.6 per cent down on the same period a year ago, and 7.1 per cent down on the amount outstanding at the end of June.

This is the lowest amount outstanding recorded since June, 1985, when consumers owed $1907.5 million on hire puchase agreements.