The finance sector is hit almost as hard by the pandemic as the rest of the economy, with firms drawing out payment terms and cutting payroll.

Total wages paid in financial and insurance services fell by eight per cent between14 March and 25 July the ABS said yesterday, and fell by 1.8 per cent in the two weeks to 25 July.

Economy-wide these falls were about half as severe.

Firms all over are taking care with working capital, to the detriment of suppliers.

Payment times “remain 224 percent higher than July 2019, across all sectors” credit agency CreditorWatch said in a release yesterday.

Patrick Coghlan, CEO of CreditorWatch, said “Payment times remain high, indicating significant cash flow issues.

“Whilst the number of companies going into administration is far below the monthly average we would expect, telling us that many firms are being artificially propped up.

“While at first glance, a decrease in business administrations, defaults and payment times seems to indicate green shoots appearing in our economy, we should be cautious.

“The number of ‘zombie companies’ - those being kept out of administration artificially - continues to grow,” Coghlan said.