BRITISH BUSINESS FORECAST.

Auckland Star, Volume LXIV, Issue 30, 6 February 1933, Page 4

BRITISH BUSINESS FORECAST.

LOWEST DEPRESSION POINT. LONDON, February 4. Discussing the trade outlook in its business forecast, the Federation ot British Industries says:—"The general impression both here and in America is that the worst is over. This may be true, as the additional setback in prices last, year compared with 1931 primarily was due to the financial crisis of the previous year, and if we may assume there will be no further major crisis, then the lowest point of the depression lias been passed. "However, even if the outlook for finance is sufficiently clear to rule out the possibility of a further major financial breakdown, recovery must be a very plow, fitful process. A condition of concealed inflation exists in many countries which may at any moment become open inflation. This may easily give rise to unjustifiable optimism and lead to reaction later. "It cannot too strongly be urged that no permanent recovery can be effected by monetary means until production has been brought into its proper relation with consumption. This is likely to be easier if achieved inside limited areas protected from external interference than by international action."