BETTER YEAR.

Auckland Star, Volume LXV, Issue 267, 10 November 1934, Page 15

BETTER YEAR.

BUSINESS ACTIVITY. BETTER THAN A YEAR AGO. BtnUJING PERMITS KISE. In the "Monthly Abstract of Statistics" for October, general business conditions are reviewed as follows: — "With two noteworthy exceptions — Unemployment and building permits issued —statistics illustrating the state of business indicate a slackening in business" activity since August, but an improved position as compared with September of last year. The volume of bank debits to individual customers' accounts —usually a reliable indicator of financial activityshows a drop of 7.3 per cent since August, and an increase of 8.7 per cent over the September, 1933, figure. The value of external trade ehows a sharp fall, both exports and imports being considerably lower than in August, when unusually High off-eeason totals were recorded.

A blight excess of imports over exports °t.merchandise is recorded for the third month in succession, the cumulative excess pi,imports during the past three months fcemg £251,000 measured in New Zealand currency.

"Features of interest in the banking stalMtice for the month are an increase m tho ratio of advances to deposits, and ft a increase, 'iin .%\xe value »f j deposite •■' on

current account; the latter a most uniieual occurrence at this period of the year. "Although banking, trade, financial and railway transport statistics show, generally speaking, reduced totals as compared with August, the value of building permits shows a rise of as much as 70 per cent. In particular, permits, for dwelling houses have risen from 149 valued at £107,673 in August, to 247, valued at £182,010, in September. This increase may be attributed to the stimulus to building activity resulting from the building subsidy scheme of the Unemployment Board. Market Price of Shares. of ■ unemployment- compare very ' favourably with the corresponding figures for "1933, the number a charge on the Unemployment Fund on September '29 1934, totalling 61,489, as compared with 75 134 a year ago—a decrease ot 18.2 per cent. On September 1, 1934, 63.012 men were a charge on the fund, eo that a decrease' of 1523 in number, or 2.4 per cent 'is shown as between the beginning and the end of that month. . "The index number of market prices oi ordinary shares (on the base: average of ■the year 1926 equals 1000) rose from 902 at the end of August to 985 at the end of September. This index number, which reached its lowest pojnt in April, lf>3A when the figure was 666-representing; a decrease of 33.4 per cent from the 1926 level of share prices, has since risen eteaSily. The improved profit earnings ot many "industrial undertakings in the last vear has reflected itself in this index; but, undoubtedly, a major cause contributing to the increase in the market prices of ordinary shares has been the drop in interest rates on fixed securities. The yield on Government stock and bonds, for example, has fallen steadily since the conversion in April, 1933, the 4 per cent converted stocks yielding on the average £3 13/4 per cent at the market quotations ruling at the end of last month.

External Trade. "September ie normally one of the lowest months of the year in respect of the value of exports, and, consequently it is not surprising to find a sharp fall in the total for last month from the abnormally high (for August) figure recorded a month previously. The September total (£2,447,032) is still, however, considerably higher than that for September of 1931 and 1032, and is slightly ahead of the 1933 figure. "Railway receipts for the period ending on September 15 exceeded working expenditure ■ by £8889—a satisfactory result for thia period of ,the year. The number of passenger journeys was 2,211,047, as compared with 1,189,084 during the previous four-weekly period. The volume of goods traffic, as indicated by the net ton-miles run, shows a decrease of 7 per cent, as compared with the previous period. Nevprtheless, the ton-mileage in the Sepi-ember period was higher than in the corresponding periods of 1931, 1932 and . 1933, tiie cause of the decrease since August being the fact that August was, for this time of the year, a particularly busy month in respect of goods traffic. Index of Prices. "The number of»motor vehicles licensed on September 30 was 178,652, of which number 118,461 were cars and 60,191 other motor vehicles. A considerable increase is observed as compared with the June licenses, but this is a normal seasonal occurrence. It is noteworthy, however, that the September figures represent increases over those of September ot last year, amounting to 6 per cent in both cases. Imports of motor spirit duiirur the nine months ending on September 30 sliowed an increase of 15 per cent over the total for the corresponding period of 1033.. "The index number of export prices for the month of September was 1083, on the base; average export prices ruling during

1909-13=1000, an increase of six points or 0.6 per cent over the figure for the previous month and of 14.2 per cent over the index for. September, 1933. A decrease of 5 points is shown in the index number o£ wholesale prices for the. month of September, locally-produced commodities and imported commodities included in the wholesale price index both contributing to this slight fall. The level of wholesale prices has remained very steady during the past twelve months, the general index fluctuating between 32 and 34 per cent above the 1909-13 level. '■' "Retail prices of food have declined slightly sincel"August,' the Dominion index number for the three food groups combined falling by 3 points, or slightly less than % per cent. The group index numbers for dairy products and groceries both fell, more than counterbalancing a further increase.in the index number for the meat group. "The amount of- sales tax collected in September was £ 172,945, a decrease ot £12.092 as compared with the August total, but an increase of. £21,149 over that collected in September, 1933. The return from this tax during the expired portion of the current financial year is substantially in excess of the amount realised for the same period of 1933-34."