With economic pressures continuing to mount, even essential services are starting to feel the pinch.

In the past few months, illion’s consumer bureau has been a considerable rise in telco delinquencies in New Zealand.

As telco services are seen as essential, consumers will often prioritise making payments to maintain their service.

Will this recent surge in telco delinquencies have implications for the overall consumer economy?

Find out more in our Economic Snapshot below.

Behind the Data: The who, what, where, when and why behind the data

Who: The analysis is compiled by illion Head of Analytics Louis Tsang, and illion Analytics Consultant Josh Day.

What: The analysis looks at the repayment history data of telecommunication companies in New Zealand. The data is sourced from illion’s comprehensive credit reporting data. Josh analyses the delinquency patterns across time and key age groups.

Where: The focus is on New Zealand consumers.

When: The stress in retail lending products has existed for some time now, across both Australia and New Zealand. However, an increase in telco delinquencies has only started to materialise in the past six months.

Why: This trend in telco delinquencies might be a microcosm of broader economic issues, including reduced disposable incomes and tightening credit conditions, which could have far-reaching implications on all consumer spending and overall economic health.

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