A staggering increase is reported in the number of businesses not paying their bills and defaulting.
New Zealand's largest credit bureau, Veda Advantage, says there's been a 64.5% increase in commercial defaults in the first six months of this year, compared with the same period last year.
Managing director John Roberts predicts it will get tougher for businesses to pay their bills in the next six to nine months and it's likely more will fail.
However, Veda says there's been a slight lift in demand for consumer credit, suggesting New Zealand may have hit the bottom of the economic downturn.
Meanwhile, a Mastercard survery also says 46% of respondents plan to spend less.
The Newmarket Business Association says retailers are finding it tough at the moment.
General manager Cameron Brewer says retail conditions are as bad as they have been in decades.