Consumer credit is stable but many Kiwi businesses are struggling to pay their bills, according to new research showing a blow-out in trade payment times.
Data and tech firm Experian’s inaugural diagnostic report into New Zealand’s consumer credit and business trading sectors has uncovered mixed news for the economy heading into 2026.
Experian’s trade payment data shows businesses were paying invoices 6.39 days late on average in the year to September 2025, up from 5.61 days the previous year – a jump of around 14%.
Businesses operating in the hospitality, food retail and food manufacturing industries have struggled nationally, while property management, financial services, performing arts and materials manufacturing sectors have also experienced stress.
Regional variations
Business activity has varied widely by geography, with the South Island seeing business growth of up to 4 per cent in Otago and Canterbury, driven by dairy, aquaculture, tourism and housing activity.
Businesses trading in Auckland and Wellington have struggled more than those in most other regions – food services businesses in both cities and retail, real estate and financial services businesses in Auckland were among the latest payers.
However, the region suffering the worst business trading stress is Taranaki, where the hospitality, finance and real estate sectors are paying invoices between 12 and 14 days late, over twice the national average.
“What we’re seeing in our New Zealand Stress Report is not a uniform downturn, but a patchwork economy where resilience and strain are sitting side by side,” says Barrett Hasseldine, Head of Data Science at Experian A/NZ.
“Consumer credit stability suggests households are still managing their obligations, however the growing delay in invoice payments indicates businesses are increasingly acting as shock absorbers for tighter margins, higher costs and cautious spending.”
Agriculture, healthcare, waste collection, education and telecommunications sectors have shown the best invoice payment performance, while industries supporting core living requirements have shown the highest level of trading stability.
Consumers focus on essentials
Growth patterns suggest consumers are prioritising essentials and technology. Electronic goods retail grew strongly, while clothing retail and grocery retail also saw growth.
Restaurants, pubs, entertainment venues and department stores continue to struggle as New Zealanders have curtailed ‘going out’.
“Sectors tied to essential services and staple consumption are demonstrating steady payment behaviour, reinforcing the shift toward needs-based spending,” Hasseldine says.
“Stronger performance in electronics retail alongside weaker hospitality and entertainment trading further suggests households are prioritising functional purchases over social and leisure activities.
“Industries such as hospitality, food retail and construction materials tend to sit closest to day-to-day consumer behaviour, so rising payment delays here signal that discretionary spending remains subdued and project pipelines are uneven.
“When cafés, suppliers and builders begin stretching payment cycles, it often reflects businesses protecting cash flow while waiting for demand to stabilise.”
Hasseldine says when taken together, these trends paint a picture of cautious economic behaviour.
“Businesses that actively manage working capital and monitor customer payment patterns will be better positioned to navigate what remains an uneven trading environment heading into 2026.”
